What's the outlook for ETN's EPS in 2025?

Eaton's (ETN) EPS outlook for 2025 is positive, with analysts projecting a growth rate that surpasses the company's historical average. Here's a detailed analysis:

1. Analyst Price Targets and Ratings:
   • The average analyst price target for Eaton is $352.5, with a consensus rating of "Neutral". This suggests that while analysts see potential in the stock, they are not overly bullish on it.
   • However, recent upgrades and price target increases by KeyBanc and UBS indicate a more optimistic view. KeyBanc upgraded Eaton from Sector Weight to Overweight, with an average one-year price target of $384.76 as of March 4, 2025. UBS maintained a Buy rating with a price target of $392.
2. Financial Projections and Growth Prospects:
   • Eaton's projected annual revenue for 2025 is $23,607 million, which represents a decrease of 5.11%. This decline is overshadowed by the projected annual non-GAAP EPS of $9.88.
   • Eaton's financial outlook surpasses UBS's expectations, with the company anticipating an average revenue growth of 7.5% per annum from 2024 to 2030. The EPS growth is expected to be more than 12% annually, which is higher than UBS's forecast of 10%.
   • Bernstein also maintains an Outperform rating with a price target of $355, indicating confidence in Eaton's growth potential.
3. Recent Acquisitions and Market Position:
   • Eaton's acquisition of Fibrebond for $1.4 billion is expected to strengthen its position in the multi-tenant data center market. This strategic move is likely to contribute to future revenue growth.
   • The transaction is expected to be neutral to Eaton's EPS in 2025, but it represents a significant expansion into a high-growth market.
4. Fundamental Health and Dividend History:
   • Eaton has a strong market capitalization of $113 billion and maintains good financial health. The company has a solid track record of dividend payments, having maintained payments for 55 consecutive years.
   • The put/call ratio of ETN is 0.64, indicating a bullish outlook among options traders.

In conclusion, while the average analyst price target and consensus rating are not overly aggressive, the recent upgrades and higher price targets from KeyBanc and UBS, combined with Eaton's strategic acquisitions and growth projections, suggest that the company's EPS is on an upward trajectory in 2025.