Mizuho has increased its price objective for Hubbell Inc. (NYSE:HUBB) to $575 from $500 and left its rating at Outperform, citing improving demand dynamics in utility end markets alongside uneven performance in other segments.
At the time of Mizuho's update, Hubbell shares were trading at $503.86, roughly 1% below their 52-week peak of $513.59. Over the last 12 months the stock has returned 27.35%.
The research note highlighted a divergence across end markets. Utility-related work - specifically transmission, grid and substation activity - is described as remaining solid, with growth characterized as high single-digit to low double-digit. By contrast, Mizuho flagged continued softness in metering and AMI (advanced metering infrastructure) businesses.
Mizuho also emphasized the company's data center business, noting it has expanded fourfold over the past three years and that management retains capacity to pursue additional gains through innovation and market share expansion. The firm expects price, cost and productivity dynamics to be neutral to positive in 2026.
On the top line, Hubbell's revenue increased by 3.84% over the trailing twelve months to $5.84 billion, according to figures cited by Mizuho. The analyst expressed encouragement that solid exit rates are being recorded against what it termed "high hurdles," and suggested the persistent headwinds tied to telecom, metering and de-stocking may finally be abating.
Mizuho held its 2026 earnings-per-share estimate for Hubbell at $19.80 and slightly raised the 2027 EPS projection to $21.35 from $21.30. The firm said the 2027 increase reflects a better growth trajectory even as margins are anticipated to be lower.
From a shareholder-return perspective, Hubbell has a long record of distributions: it has paid dividends for 56 consecutive years and increased those payouts for 18 straight years, per InvestingPro data referenced in the note.
Valuation metrics cited in the coverage indicated a price-to-earnings ratio of 29.96 and a return on equity of 25%. InvestingPro analysis referenced in the research states that Hubbell is trading above its fair value.
Recent company results were also noted. In its fourth quarter of fiscal 2025 Hubbell reported adjusted EPS of $4.73 versus analysts' consensus of $4.71, and net sales of $1.493 billion, which matched market expectations. Despite the slight earnings beat, the stock experienced a notable pre-market decline attributed by observers to wider market sentiment and sector performance.
Analysts remain attentive to how those broader trends will influence future performance. The Mizuho upgrade and the latest quarterly results together form the basis for the firm's near-term outlook: stronger utility-related demand and rapid data center growth offsetting ongoing weakness in metering and AMI.
For investors seeking further detail, the research referenced additional proprietary commentary and analysis available through InvestingPro, which includes extended ProTips and financial scoring.