Are Wall Street Analysts Bullish on Eaton Stock?

Core Insights - Eaton Corporation plc (ETN) has a market capitalization of $146.6 billion and operates globally in power management across various segments including Electrical, Aerospace, Vehicle, and eMobility [1] Stock Performance - ETN shares have outperformed the broader market over the past 52 weeks, increasing by 23.4% compared to the S&P 500 Index's 14.4% gain [2] - Year-to-date, ETN shares are up 22.6%, while the S&P 500 Index has only gained 1.4% [2] - However, ETN has underperformed compared to the State Street Industrial Select Sector SPDR ETF (XLI), which increased by 26.5% over the same period [3] Financial Results - In Q4 2025, Eaton reported record adjusted EPS of $3.33 and sales of $7.1 billion, with significant growth in orders: Electrical Americas orders rose by 16% and Aerospace orders by 11% [6] - The Electrical segment saw a backlog growth of 29%, while Aerospace experienced a 16% increase, with segment margins reaching a Q4 record of 24.9% [6] Future Projections - For the fiscal year ending December 2026, analysts project ETN's adjusted EPS to grow by 10.2% year-over-year to $13.30 [7] - Eaton has a strong earnings surprise history, having beaten consensus estimates in the last four quarters [7] - The consensus rating among 23 analysts is a "Moderate Buy," with 14 "Strong Buy" ratings, two "Moderate Buys," and seven "Holds" [7] Price Target and Analyst Ratings - Morgan Stanley raised Eaton's price target to $425 while maintaining an "Overweight" rating [8] - The mean price target of $405.41 indicates a premium of 2.1% over current levels, while the highest price target of $495 suggests a potential upside of 24.7% [8]