Eaton Corp. (NYSE:ETN) is one of the 10 Data Center Cooling Companies to Invest In. On December 9, Wolfe Research upgraded the company’s stock from Peer Perform to Outperform. The firm also assigned a target price of $413.
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
Analysts at Wolfe Research believe the company’s cyclical business units may have bottomed, pointing to both the Vehicle segment and eMobility. They believe the downturn has brought the company’s valuation to very reasonable levels.
Eaton Corporation plc’s (NYSE:ETN) forward earnings expectations are also reasonable, according to the research house, which believes the Boyd transaction could support the company’s growth and multiple expansion going forward.
As a reminder, on November 3, Eaton signed a deal to acquire Boyd Corporation’s thermal business unit for $9.5 billion. This investment was made to help the company improve its data center and liquid cooling capabilities to support the AI infrastructure being built. Eaton paid 22.5 times Boyd Thermal’s 2026 EBITDA. The CEO Paulo Ruiz had this to say at the time of the signing:
“Bringing together Boyd Thermal’s highly-engineered liquid cooling technology and global service model with Eaton’s existing products and scale will provide enhanced value to customers. In data centers, particularly, our combined expertise in both power and liquid cooling from the chip to the grid will enable customers to manage increasing power demands more effectively.”
Eaton Corporation plc (NYSE:ETN) is a power management company operating in the United States, Latin America, Canada, Asia Pacific, and Europe. The company functions across five segments: Electrical Global, Aerospace, eMobility, Vehicle, and Electrical Americas. It provides power distribution and assemblies, emergency lighting, single- and three-phase power-quality and connectivity products, electrical components, wiring devices, and more. It is based in Dublin, Ireland.
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Disclosure: None. This article is originally published at Insider Monkey.
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