This power management stock could win big from AI-fueled energy demands

[Pelican Press 0]

This power management stock could win big from AI-fueled energy demands

This is the hidden content, please

• Sign In
• or
• Sign Up

for the data center end market, raising its compound annual growth rate , or CAGR, forecast for its global addressable market to roughly 25% between 2022 and 2025. Previously, the company called for a CAGR of 16%. Last year, Eaton also said that data centers and IT accounted for 14% of revenues. “As expected, the biggest increase is coming from the very strong demand for AI data centers, which is reflected both in our orders and in our negotiation pipeline,” said CEO Craig Arnold during an earnings call last month. “Here, orders on a trailing 12-month basis have more than doubled, and our negotiations in the U.S. have increased by more than 4x.” Ahead of Eaton’s quarterly print, Bank of America analyst Andrew Obin highlighted the stock as a “pure-play electrical equipment” with high-growth businesses beyond data centers. The company’s restructuring program should also boost margins. “While data center ******** the strongest end market, it seems that other end markets (residential, distributed IT) improved more than expectations to drive beats,” he wrote. Elsewhere, Mizuho’s Brett Linzey highlighted Eaton’s “extended revenue visibility” given its “mega projects” aimed at meeting reshoring and data center needs. The firm’s $365 bull case implies 7% upside from Friday’s close. “We don’t envision significant multiple expansion for ETN from here but believe the stock can continue to grind higher in-line with earnings growth,” he wrote.

This is the hidden content, please

• Sign In
• or
• Sign Up

Eaton Corporation PLC,Stock markets,Investment strategy,GS Acquisition Holdings Corp,business news
#power #management #stock #win #big #AIfueled #energy #demands

This is the hidden content, please

• Sign In
• or
• Sign Up