Eaton Corp PLC

ETN: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$478.00	Dmq	Vxpwmkh

Eaton’s Results Were as Expected, but Strong Guide Prompts Us to Lift Fair Value Estimate by Over 6%

Joshua Aguilar

Feb 9, 2023

After reviewing narrow-moat-rated Eaton’s latest results and rolling our model, we lift our fair value estimate by over 6% to $164. While results were very much in line with expectations, Eaton’s guidance came out ahead of what we earmarked. Time value of money also made up a small portion of the raise. Eaton is tracking ahead of its 2025 targets, and we’re encouraged by management’s commentary on the call regarding its long-term secular growth drivers, despite market-related fears of a recession.

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