UBS Reiterates Neutral Rating on Hubbell (HUBB), Waiting for Evidence of Top-Line Momentum

UBS analyst Neal Burk reiterated a Neutral rating and $515.00 price target on Hubbell (NYSE: HUBB).

The analyst commented, "The key debate around HUBB is whether its recent organic growth acceleration can be sustained, or will it moderate and indicate HUBB has good electrification exposures, but without the financial profile to match. In this report we provide our expectations around 2Q results, and also lay out HUBB's prospective growth potential. We think that HUBB's end markets could translate to high single digit organic sales growth over time, but for now we'd like to see more evidence of topline momentum at the company. Specifically, we look for indications around the sustainability of improved electric distribution investment and more growth tied to volumes rather than price. HUBB is not the only company raising price, but we think that volume will need to be a larger contributor to growth before sentiment can turn more positive on the stock."

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

Shares of Hubbell closed at $489.73 yesterday.

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