Update shared on04 Sep 2025
Fair value Increased 0.94%Analysts’ bullish outlook on Eaton, driven by anticipated sector-wide earnings strength and higher valuation multiples, has resulted in the consensus price target holding steady at $390.35.
Analyst Commentary
- Bullish analysts are raising price targets in anticipation of an upward bias to Eaton's earnings estimates and solid Q2 sector results.
- Expectations for multiple expansion across the machinery and industrial conglomerate sector are driving target adjustments higher.
- Positive sentiment is reinforced by anticipated increases in 2025 earnings outlooks for Eaton and its sector peers.
- Sector-wide Q2 reports are being used as a basis to adjust financial models and justify more optimistic valuation assumptions.
- Outperformance in related industrial names and attractive multi-year growth trajectories support higher valuation multiples for Eaton.
What's in the News
- Eaton and ChargePoint launched an ultrafast, V2X-capable charging architecture for public EV and fleet applications, offering up to 600kW for passenger vehicles and megawatt charging for heavy-duty use, integrating renewables and supporting grid balancing.
- Eaton completed a $855.28 million share repurchase program, buying back 2,842,639 shares (0.73% of shares outstanding).
- The company raised its 2025 full-year organic growth guidance to 8.5%-9.5% and EPS to $10.41-$10.61, representing 11% growth at midpoint.
- Eaton formed an alliance with We Energies to deploy a 4MW solar project in Wisconsin, expected to deliver 30% of annual carbon reduction targets at five sites and contribute to a 58% cut in state greenhouse gas emissions since 2018.
- Eaton is collaborating with NVIDIA to develop 800V HVDC power infrastructure for AI data centers, enabling power support for 1MW racks and providing grid-to-chip solutions for next-gen GPU deployments.
Valuation Changes
Summary of Valuation Changes for Eaton
- The Consensus Analyst Price Target remained effectively unchanged, at $390.35.
- The Consensus Revenue Growth forecasts for Eaton remained effectively unchanged, at 9.0% per annum.
- The Net Profit Margin for Eaton remained effectively unchanged, at 17.31%.
Disclaimer
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