Eaton Plans to Spin Off Vehicle and eMobility Segments into Independent Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Eaton announced that it intends to pursue a separation of its Vehicle and eMobility segments into an independent, publicly traded company. The separation of the Mobility Group is expected on closing to be immediately accretive to Eaton's organic growth and operating margin. Eaton expects to complete the anticipated spin-off by the end of the first quarter of 2027, subject to the satisfaction of customary legal and regulatory requirements and approvals, including final approval of the company's Board of Directors and effectiveness of a Form 10 registration statement filed with the U.S. SEC. The planned separation is expected to be completed in a manner that is tax-free to Eaton shareholders for U.S. federal income tax purposes.
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Analyst Views on ETN
Wall Street analysts forecast ETN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ETN is 401.36 USD with a low forecast of 340.00 USD and a high forecast of 440.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 347.320
Low
340.00
Averages
401.36
High
440.00
Current: 347.320
Low
340.00
Averages
401.36
High
440.00
About ETN
Eaton Corporation plc is an intelligent power management company. Its Electrical Americas segment consists of electrical components, industrial components, power distribution and assemblies, residential products, single phase power quality and connectivity, wiring devices and others. The Electrical Global segment consists of electrical components, industrial components, power distribution and assemblies, single phase and three phase power quality, and services. The Aerospace segment is a global supplier of aerospace fuel, hydraulics, and pneumatic systems for commercial and military use and filtration systems for industrial applications. The Vehicle segment designs, manufactures, markets, and supplies of drivetrain, powertrain systems and critical components. The eMobility segment designs, manufactures, markets, and supplies mechanical, electrical, and electronic components and systems. The Company is also engaged in providing thermal monitoring for critical electrical equipment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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