11:27 AM EST, 11/05/2025 (MT Newswires) -- Eaton (ETN) is benefiting significantly from long-term structural growth trends in artificial intelligence infrastructure, and its upcoming acquisition of Boyd Thermal should further improve its growth prospects, UBS Securities said in a Tuesday note.

The company posted Q3 EPS at the midpoint of guidance and reiterated full-year EPS, and the outlook is "getting better" for 2026, UBS analysts said.

The key positive for Eaton was its organic orders in its crucial Electrical Americas segment reached nearly an estimated $4 billion, growing 7% on a trailing 12-month basis, compared with 2% in the prior quarter, the analysts said. They added that the figure is better than expected and more consistent compared to other AI-exposed companies.

Eaton is projected to end this year with low double-digit organic growth, which is impressive given the company's size and scope, according to the note. This sets up the company for positive analyst revisions and the potential for "good outperformance" in 2026, the note said.

UBS has a buy rating a Eaton and a price target of $440.

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