UBS Reiterates Buy Rating on nVent Electric (NVT) Following Analyst Day

UBS analyst Neal Burk reiterated a Buy rating and $135.00 price target on nVent Electric (NYSE: NVT).

The analyst commented, "nVent will host its analyst day this morning in New York. We hosted a tour and management meeting last week, and our takeaways were very positive on the medium to long-term outlook (see note here: link). The company's disclosures today support that view, and we'd expect shares to be up and continue moving higher as market participants better appreciate the path forward. To this point, the company is projecting organic growth of low double digits over the next three years (mid teens on a reported basis) and operating margin of 22%. The implied incremental margin is 25%, which is entirely as expected and reflective of all the capacity being added to meet NVT's growth opportunity. Importantly, implied EPS at the high end of the range is approaching $6 per share, which is 5% ahead of consensus (NVT is typically conservative out of the gate)."

For an analyst ratings summary and ratings history on nVent Electric click here. For more ratings news on nVent Electric click here.

Shares of nVent Electric closed at $120.27 yesterday.

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