Eaton upgraded to Buy from Hold at Melius Research

Melius Research upgraded Eaton (ETN) to Buy from Hold with a price target of $495, up from $412. Concerns around valuation and slowing earnings momentum have dissipated given reaccelerating AI capex news flow and a less demanding valuation, while Melius has greater confidence that there will be more demand than supply even after capacity adds, the analyst tells investors in a research note. Eaton’s more cyclical businesses are in the process of bottoming, and should add another leg of growth in 2026 and beyond, the firm adds.