Bernstein SocGen on nVent Electric (NVT): 'Our Top Pick Going into 3Q (across our entire coverage)'

Bernstein SocGen Group analyst Varun Govindaraj reiterated an Outperform rating and $229.00 price target on nVent Electric (NYSE: NVT).

The analyst commented: "Our top pick going into 3Q (across our entire coverage). We think investors underestimate the earnings torque the company can get from liquid cooling, especially now that Rubin has started to ship. Liquid cooling will grow at a rate higher than GW added over the next 3 - 5 years as we see it gain a greater share of deployments in the future, and this is a big part of growth for NVT. We also think the multiple discount to VRT is no longer warranted (on the basis of growth / margin outlook) and expect to see convergence over the next couple of quarters. We have also seen significant interest from LOs doing the work on the name as it approaches the size that makes it interesting to larger cap managers. We are marginally more concerned on price / cost for NVT than we are for VRT given they may see weakness in the EC business, but if orders come in strong that should not be an issue. Investors we have spoken with expect to see relatively weak orders growth (~10% YoY off tough comps in 3Q25), however, given orders were weak in 2Q and tend to be lumpy, we believe some of that demand is possibly “deferred” into 3Q and we could see orders numbers come in better than expected. Even with tepid order expectations, investors seem to largely be long the stock going into the print. We are largely in line with guidance for 3Q26 as we believe this is the best indicator of numbers in a space where data is largely opaque. We forecast revenue at $1.43B (VA consensus at $1.42B and implied guidance midpoint at $1.41B) and EPS at $1.39 (VA consensus at $1.38 and guidance midpoint at $1.37). However, NVT is known for being conservative and investors seem to be expecting a 10%+ EPS beat on the 3Q26 guide (which does seem likely based on performance in the last couple of quarters)."

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 $165.77 yesterday.

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