Eaton Corporation (ETN) PT Lowered to $175 at Jefferies Despite Announcing Higher Long Term Earnings Target

Jefferies analyst Stephen Volkmann lowered the price target on Eaton Corporation (NYSE: ETN) to $175.00 (from $190.00) after management provided an updated set of revenue and margin targets which imply ~$10/shr in earnings by 2025 and an incremental $1/shr from capital deployment. Management also made a case for growth in the global transition to electrification including opportunities for connected components and data monetization which should help support continued multiple expansion.

The analyst reiterated a Buy rating, stating "shares of ETN are down nearly 11% since the start of 2022 (down 3% vs S&P 500) with market multiples contracting. We maintain our Buy rating and are encouraged by the growth targets the company has set though lower our PT to $175 to better reflect contracting peer multiples."

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