Bank of America Raised Eaton Earnings Forecast
Analyst Andrew Obin cited strong data center electrical demand while reiterating a buy rating on the power management firm.
Updated on Oct. 2, 2026 in Data Centers
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Bank of America Securities analyst Andrew Obin has raised the 2027 earnings per share forecast for Eaton Corporation to $15.90 from $14.92. This outlook follows Eaton's acquisition of European power capacity from COL Group for 810 million euros.
Why it matters
The upgrade reflects anticipated lower corporate expenses and robust growth within the company's electrical segment. Sustained demand from data centers and utilities continues to drive strong order activity for the manufacturer.
Eaton Corporation stock price is $436.97 with an RSI of 78.03, putting it in overbought territory as of October 2. The firm projects organic growth of 16.0% supported by an annualized data center spending pace of $75 billion.
The players
Eaton Corporation
This power management company provides electrical and mechanical energy solutions for data centers and utility infrastructure.
Bank of America Securities
This institutional investment firm provides research and financial analysis services for equity market investors.
Andrew Obin
He serves as a lead research analyst for Bank of America Securities covering the industrial and electrical sectors.
Paulo Ruiz
He currently serves as the chief executive officer of Eaton Corporation.
COL Group
This entity recently finalized a transaction involving the sale of European power capacity assets to Eaton Corporation.
The details
Eaton Corporation continues to leverage high electrical demand, with the analyst maintaining a $3.54 EPS estimate for the third quarter. The company's stock has outperformed over the past 12 months, gaining 18.97% and trading consistently above its key moving averages.
Timeline
July 2026: Data center spending hit a $75 billion annualized pace.
August 30, 2026: RSI for the stock reached oversold territory.
September 16, 2026: CEO Paulo Ruiz noted strong July and August results.
October 2, 2026: RSI crossed above 70 into overbought territory.
2027: The target year for the revised earnings per share forecast.
Roadmap
Eaton Corporation's growth trajectory mirrors the broader industrial expansion fueled by the 57% year-over-year surge in data center capital expenditures. This positions the company as a key beneficiary of the global transition toward high-capacity, energy-intensive digital infrastructure.
Investors holding Eaton stock should monitor the stock's overbought status, which may indicate short-term volatility despite favorable long-term EPS forecasts. The company's expansion into European markets could stabilize supply chains, potentially affecting equipment availability for local electrical projects.
The takeaway
The sustained demand from data center infrastructure continues to serve as a critical catalyst for power management companies. Investors should remain mindful of technical indicators like RSI when assessing entry points in markets currently defined by rapid infrastructure growth.
Further reading
For additional context on the infrastructure market, visit the Data Centers section.
Source note: This article includes information reported by Benzinga.
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