BofA reiterates Buy on Eaton with a $490 price target

Bank of America Securities reiterated a Buy rating on Eaton Corporation with a price target of $490. Analyst Andrew Obin raised his 2027 earnings estimate to $15.90 per share from $14.92, close to the $15.95 consensus. The revision reflects stronger electrical segment growth, improved margins, lower corporate expenses, and reduced merger and acquisition costs, which partly offset weaker performance in aerospace.

The research note follows remarks from Eaton CEO Paulo Ruiz at a conference on September 16, 2026. Ruiz stated that the company experienced very strong performance in July and August, leading management to expect third-quarter results toward the high end of guidance. Bank of America kept its third-quarter EPS estimate at $3.54, near the top of the company's guidance range of $3.46 to $3.56. The bank also raised its third-quarter organic growth projection to 16.0% from 14.8%, above the 14.3% consensus.

Obin highlighted that channel checks point to solid visibility and pricing power in U.S. electrical markets, backed by utilities and data centers. Spending in data centers jumped 57% year over year in July, reaching an annualized pace of $75 billion. The analyst noted that improving productivity through operational execution is the main priority for the second half of 2026 to counter supply chain pressures in aerospace.

Over the past 12 months, shares of Eaton have risen 18.97%. On October 2, 2026, the stock was down 0.07% at $436.97 during trading.