Bernstein Reiterates Outperform Rating on Eaton Corporation (ETN)

Bernstein SocGen Group analyst Chad Dillard reiterated an Outperform rating and $414.00 price target on Eaton Corporation (NYSE: ETN).

The analyst commented: "Eaton makes its much-awaited move into liquid cooling; buys Boyd Thermal for $9.5B; What happened? This morning ETN announced an agreement to buy Boyd Thermal, a leader in the liquid cooling space, for $9.5B or 22.5x based on estimated ‘26 EBITDA. ETN estimates Boyd will generate $1.7B in sales in ‘26, of which $1.5B are in liquid cooling. The deal is set to be financed with $8B in debt. The deal is expected to close in 2Q26. Boyd is expected to be housed in ETN’s Electrical Global segment, and contribute ~$400M to 4Q sales.

Why now? Mgmt. has been questioned for years now about a potential entry into cooling based on the market’s high-growth potential and complimentary solutions to its existing data center portfolio, particularly with recent competitor deals (namely Schneider Electric & Motivair last Oct)."

For an analyst ratings summary and ratings history on Eaton Corporation click here. For more ratings news on Eaton Corporation click here.

Shares of Eaton Corporation closed at $386.57 yesterday.

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