RBC on Eaton Corporation (ETN): 'Investors Should be Buying This Dip'; PT Lowered to $405

RBC Capital analyst Deane Dray lowered the price target on Eaton Corporation (NYSE: ETN) to $405.00 (from $407.00) while maintaining a Outperform rating.

The analyst commented: "Modest 4Q24 Beat & In-Line Guide; Full Confidence in Datacenter Growth Outlook; Outperform-rated Eaton reported a largely in-line/modest 4Q24 beat vs. our estimates and initiated as-expected 2025 guidance. Following Monday’s DeepSeek-triggered selloff, we were impressed/relieved with CEO Craig Arnold’s unwavering confidence in Eaton’s datacenter growth outlook, adding that Eaton had canvassed all its key datacenter customers and heard no changes to growth/capex plans. For 2024, datacenter orders were up 75% adding to the 7-year backlog. As for the broader Electrical Supercycle, the megaproject secular driver in NA (spending +$1 bil) has expanded to 569/$1.7 tril. The initial 2025 guidance looks conservative/ beatable to us. We believe investors should be buying this dip."

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