An analyst from BNP Paribas Exane, Andrew Buscaglia, has begun coverage of Eaton (ETN, Financial) with an Outperform rating. His analysis sets a price target of $380 for the stock, indicating a positive outlook on its future performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Eaton Corp PLC (ETN, Financial) is $343.69 with a high estimate of $418.18 and a low estimate of $291.17. The average target implies an upside of 4.44% from the current price of $329.09. More detailed estimate data can be found on the Eaton Corp PLC (ETN) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Eaton Corp PLC's (ETN, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Eaton Corp PLC (ETN, Financial) in one year is $292.19, suggesting a downside of 11.21% from the current price of $329.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Eaton Corp PLC (ETN) Summary page.
ETN Key Business Developments
Release Date: May 02, 2025
- Adjusted EPS: $2.72, up 13% from the prior year.
- Organic Growth: 9%, with strength in Electrical Americas, aerospace, and Electrical Global.
- Segment Margins: Record 23.9%, in line with guidance.
- Total Company Orders: Increased 3% versus prior quarter.
- Revenue: Record quarterly revenue of $6.4 billion.
- Electrical Americas Organic Sales Growth: 13%, driven by data center and utility end markets.
- Electrical Americas Operating Margin: 30%, up 80 basis points versus prior year.
- Electrical Global Organic Growth: 9%, with strength in data center, machine OEM, and utilities end markets.
- Aerospace Organic Growth: 13%, resulting in all-time record sales.
- Aerospace Operating Margin: 23.1%.
- Vehicle Segment Revenue: Down 15%, including an 11% organic decline.
- Vehicle Segment Operating Margin: 15.5%.
- E-mobility Revenue Growth: 2%, with 3% organic growth.
- 2025 Organic Growth Outlook: Raised by 50 basis points to a range of 7.5% to 9.5%.
- 2025 Adjusted EPS Guidance: Reconfirmed at $11.80 to $12.20.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Eaton Corp PLC (ETN, Financial) reported a record Q1 adjusted EPS of $2.72, up 13% from the previous year.
- The company achieved 9% organic growth, with notable strength in Electrical Americas, aerospace, and Electrical Global segments.
- Eaton Corp PLC (ETN) delivered Q1 record segment margins of 23.9%, aligning with their guidance.
- The company has a strong backlog and a book-to-bill ratio of 1.1, indicating robust future demand.
- Eaton Corp PLC (ETN) raised its expectations for organic growth and reaffirmed its adjusted EPS, cash flow, and share repurchase guidance for 2025.
Negative Points
- The Vehicle segment experienced a 15% revenue decline, primarily due to weakness in commercial and ICE light motor vehicle markets.
- The company faces uncertainties from the dynamic global trade environment, including tariff impacts.
- Eaton Corp PLC (ETN) lowered its 2025 segment margin guidance by 40 basis points due to commercial actions offsetting tariff impacts.
- The Electrical Americas segment saw a 4% decline in orders on a rolling 12-month basis due to tough comparisons from a large multiyear order in Q1 2024.
- The company anticipates a slight decline in internal combustion engine light vehicle growth, adjusting its forecast from slight growth.
