KeyBanc Raises PT on Eaton Corporation (ETN), Keeps a Buy Rating

​Eaton Corporation plc (NYSE:ETN) is one of the Best Liquid Cooling Stocks to Buy for AI Data Centers. On May 7, KeyBanc analyst Jeffrey Hammond raised the firm’s price target on Eaton Corporation plc (NYSE:ETN) from $420 to $480, while maintaining a Buy rating on the shares.

​The rating comes after the company released its fiscal Q1 2026 earnings on May 5. During the quarter, the company reported $7.45 billion in revenue, reflecting 16.8% year-over-year increase and ahead of expectations by $308.44 million. The GAAP EPS of $2.22 missed expectations by $0.24, but the non-GAAP EPS of $2.81 was ahead of the consensus by $0.08.

​Analyst Jeffrey Hammond noted that he acknowledges the short-term margin pressure after Q1 earnings but emphasized that underlying demand in the Electrical segment remains very strong, supported by solid orders. The analyst expects margins to improve over time, driven by increased demand. He is also more confident in the long-term story, highlighting powerful structural tailwinds in data centers and utilities.

​Lastly, the analyst anticipates that current margin headwinds tied to capacity investments should ease in the second half of 2026, creating room for earnings to beat current estimates.

Eaton Corporation plc (NYSE:ETN) is an intelligent power‑management company that designs and manufactures products and systems to manage electrical, hydraulic, and mechanical power safely and efficiently. The company also provides thermal monitoring for critical electrical equipment, helping prevent overheating and unplanned outages in infrastructure such as switchgear, transformers, and data‑center power systems.

While we acknowledge the risk and potential of ETN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ETN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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