Benzinga | Nov 3, 2021 03:33PM EDT

Analysts Bump Up Eaton Price Target Post Q3 Results

* Wells Fargo analyst Joseph O'Dea raised the price target on Eaton Corporation PLC (NYSE:ETN) to $173 (an upside of 2%) from $159 and maintained an Equal Weight rating on the shares.

* The analyst notes that despite supply chain headwinds impacting revenue performance, Eaton was able to showcase its new margin profile, posting an "impressive" 19.9% adjusted op margin in Q3.

* O'Dea adds the results highlight both portfolio transformation benefits and "impressive" execution.

* Credit Suisse analyst John Walsh raised the price target to $184 (an upside of 8%) from $171 and maintained an Outperform rating on the shares after the company printed a "strong" Q3 operating margin.

* Walsh notes both Electrical Americas and Global performed strongly in residential and data center markets, with organic orders up 17% and backlog reaching record levels.

* Walsh adds that supply chain constraints, with particular reference to third-party suppliers, continue to impact revenue growth.

* The analyst points out that management indicated these issues will likely not be resolved until after the first half of 2022 but said they expected sequential improvement.

* Morgan Stanley raised the price target to $190 (an upside of 12%) from $175 and maintained an Overweight rating on the shares.

* RBC Capital analyst Deane Dray raised the price target to $153 (a downside of 10%) from $152 and maintained a Sector Perform rating.

* Barclays analyst Julian Mitchell raised the price target to $170 from $163 and maintained an Equal-Weight rating on the shares.

* Price Action: ETN shares are trading lower by 1.23% at $169.52 on the last check Wednesday.