William Blair analyst Brian Drab has maintained their bullish stance on NVT stock, giving a Buy rating today.
Brian Drab has given his Buy rating due to a combination of factors surrounding nVent Electric’s strategic acquisition of the Electrical Products Group (EPG). This acquisition, valued at $975 million, is expected to enhance nVent’s offerings in the power utilities and data center sectors, particularly through EPG’s enclosures, switchgear, and bus systems businesses. The deal is anticipated to be accretive to nVent’s adjusted earnings per share within the first year, with a payback period of approximately three years.
Furthermore, EPG’s strong backlog in the power utilities market provides nVent with significant revenue visibility through 2026. The acquisition is expected to contribute to double-digit growth in nVent’s power utilities segment, aligning with the company’s broader growth strategy. This strategic move builds on nVent’s previous acquisition of Trachte, further solidifying its position in the power utilities vertical and supporting robust organic growth.
Drab covers the Industrials sector, focusing on stocks such as Donaldson Company, nVent Electric, and Xometry. According to TipRanks, Drab has an average return of 18.2% and a 60.00% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $83.00 price target.