Deutsche Bank Slashed Hubbell Rating to Hold
Deutsche Bank analysts downgraded Hubbell (NYSE:HUBB) from Buy to Hold, adjusting their price target to $473 from $493. The decision came after a 24% increase in Hubbell’s stock price over recent months, bringing it close to the prior target.
The downgrade was part of a re-evaluation of the company’s valuation framework, which now applies a 25x next-twelve-month (NTM) price-to-earnings multiple, down from the previous 26x.
The analysts highlighted potential upside risks, including channel inventory normalization, accelerating demand in utility transmission and distribution, and stronger-than-expected margin execution. However, downside risks were also noted, such as continued destocking by utility customers, challenges in further price increases leading to price/cost headwinds, and limited accretive capital allocation opportunities.
| Symbol | Price | %chg |
|---|---|---|
| 267260.KS | 391500 | -2.68 |
| 247540.KQ | 123600 | 2.67 |
| 010120.KS | 220500 | -0.68 |
| 6503.T | 2436 | -5.13 |
