HUBB: Raised EPS Outlook And Dividend Increase Will Drive Renewed Upside

Analysts have lowered their price target on Hubbell by about $3 to reflect slightly reduced fair value estimates and a view that the stock's current valuation already incorporates its modest organic growth outlook.

Analyst Commentary

Recent Street research reflects a balanced view on Hubbell, with analysts acknowledging solid fundamentals but questioning how much upside remains at the current share price.

Bullish Takeaways

• Bullish analysts highlight the company’s favorable end market exposure as a key support for steady demand and earnings stability over the medium term.
• They see Hubbell’s diversified customer base as a buffer against cyclical swings, supporting a premium relative valuation to some peers.
• Positive views also point to the potential for operational execution and margin management to sustain earnings even if top line growth remains muted.

Bearish Takeaways

• Bearish analysts argue that the current valuation already prices in much of Hubbell’s anticipated earnings power, leaving limited room for multiple expansion.
• They remain cautious that recent organic growth has been negative or only in the low single digit range, which may constrain upside to revenue estimates.
• Concerns are also tied to execution risk if end market conditions soften further, which could expose the stock’s full valuation and pressure near term returns.
• Some see a more attractive risk reward profile only if share price weakness provides a better entry point relative to the company’s growth and margin outlook.

What's in the News

• Hubbell raised its 2025 diluted EPS guidance to a range of $16.55 to $16.75 and now expects 3% to 4% total and organic net sales growth for the year (company guidance update).
• The Board approved an 8% increase in the annual dividend to $5.68 per share, or $1.42 quarterly, payable December 15, 2025 to shareholders of record on November 28, 2025 (dividend announcement).
• Long serving CFO Bill Sperry will retire from the CFO role effective December 31, 2025. Joseph Capozzoli has been appointed to succeed him as Senior Vice President and CFO beginning January 1, 2026, following a planned transition period (executive leadership update).
• The company reported no share repurchases in the tranche from July 1, 2025 to September 30, 2025 under its February 12, 2025 buyback authorization (buyback tranche update).
• Hubbell also completed the repurchase of 710,000 shares, or 1.32% of shares outstanding, for $265.1 million under the buyback program announced on October 21, 2022 (buyback tranche completion).

Valuation Changes

• The fair value estimate has fallen slightly to about $479 from approximately $481, reflecting a modest downward revision in intrinsic value.
• The discount rate has edged down marginally to roughly 9.32% from about 9.35%, indicating a slightly lower assumed cost of capital.
• Revenue growth has risen slightly to around 6.73% from approximately 6.73%, implying a nearly unchanged but marginally more optimistic top-line outlook.
• The net profit margin has eased fractionally to about 15.79% from roughly 15.79%, signaling an almost flat, slightly lower margin expectation.
• The future P/E has declined slightly to about 29.2x from roughly 29.4x, suggesting a small reduction in the forward valuation multiple applied to earnings.