5 Stocks Receiving a Massive Vote of Approval From Wall Street Analysts

04. Eaton Corporation plc (NYSE:ETN)

Price Reaction after the Upgrade: +10.35 (+3.23%)

On April 5, RBC Capital upgraded Eaton Corporation plc (NYSE:ETN) from Sector Perform to Outperform, along with a substantial increase in the price target from $286 to $371. The decision to upgrade Eaton Corporation plc (NYSE:ETN) stems from RBC Capital’s identification of the company as a prime large-cap stock poised to benefit from the ongoing electrical supercycle. This optimism is grounded in several key factors, including Eaton Corporation plc (NYSE:ETN) involvement in over 330 billion-dollar megaprojects and its leading exposure to the rapidly growing datacenter market, projected to achieve a mid-teens compound annual growth rate (CAGR). Of particular note is Eaton Corporation plc (NYSE:ETN) broad-based datacenter exposure, which RBC Capital anticipates will continue to drive growth and potentially expand into related areas. Additionally, the firm sees the arrival of a new CEO in 2025 as a potential catalyst for upward revisions of long-term company targets. Furthermore, strategic portfolio adjustments, such as the divestiture of the Vehicle Joint Venture, present opportunities for Eaton to further optimize its business structure. The upgrade reflects RBC Capital’s belief in the durability of multiple secular trends that Eaton Corporation plc (NYSE:ETN) is well-positioned to capitalize on. The company’s diverse project involvement and strategic positioning within the electrical industry are key drivers of RBC Capital’s bullish stance. The new price target of $371 implies an upside of 16% from the previous target, signaling a confident outlook for Eaton’s stock performance. The upgrade triggered a notable surge in market activity, with Eaton’s stock witnessing a robust price reaction, soaring by 3.23% on April 5.