HUBB - Hubbell falls in early trading as JPMorgan downgrades to Underweight
Hubbell ( NYSE: HUBB ) on Wednesday fell 3.2% in early trading after analysts at JPMorgan downgraded the stock of the maker of electrical equipment to Underweight from Overweight. The bank said Hubbell has a premium valuation compared with peers.
“The valuation more than fully reflects potential upside from utility growth and price/cost benefits,” C. Stephen Tusa Jr., analyst at JPMorgan, said in an Oct. 19 report. “The narrative ignores the 'ris’' side of the risk/reward equation and 12 months from now, the sentiment is more likely to reflect slower growth.”
Hubbell, whose equipment brands include Acme Electric, Bell Outdoor, Raco, TayMac and Wiegmann, had risen 12% to close at $229.79 by the end of trading on Oct. 18, compared with a 22% decline for the S&P 500 Stock Index ( SP500 ).
JPMorgan, which has a price target of $200 for Hubbell, raised its earnings estimates for the company and introduced its 2024 EPS estimate of $12.50, compared with the consensus of $11.75.
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Hubbell falls in early trading as JPMorgan downgrades to Underweight