Eaton Corp PLC: Mobility Group divestiture on track; Dana merger news a positive

研报英文原文证据摘录

Eaton Corp PLC: Mobility Group divestiture on track; Dana merger news a positive

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Eaton Corp PLC

Mobility Group divestiture on track; Dana

merger news a positive

Reiterate Rating: BUY | PO: 490.00 USD | Price: 375.46 USD

Mobility Group divestiture adds a partner with Dana 11 June 2026

This morning, Eaton announced a definitive agreement to merge Mobility Group with Equity

Dana Inc. (DAN; not covered). Today’s news does not change the divestiture timeline and

is consistent with our prior view of valuation. Eaton had previously announced (on Jan. Andrew Obin Research Analyst

27th) plans to divest Mobility Group (comprised of former Vehicle & eMobility BofAS

segments) into an independent, publicly traded company by 1Q27. Eaton is structuring +1andrew.obin@bofa.com646 855 1817

the Dana transaction as a Reverse Morris Trust. Eaton will first separate Mobility Group, David Ridley-Lane, CFA

which will then immediately merge with Dana. Eaton (ETN) shareholders will receive Research Analyst

BofAS

newly issued shares in Mobility Group and own at least 50.1% of the merged company. +1 646 855 2907

Eaton will receive a ~$1.1bn in cash dividend funded by newly issued debt of the david.ridleylane@bofa.com

Mobility Group. We reiterate our Buy rating. Devin Leonard

Research Analyst

+1 646 855 3698$5bn valuation is in line; modestly dilutive to adj. EPS devin.leonard@bofa.com

This transaction values Mobility Group at $5.1bn. This represents an 8.3x multiple of pro

forma 2026 adjusted EBITDA according to the company. We previously estimated (see

our Jan 5th report) that Mobility Group would have a ~$5bn valuation. We estimate the

divestiture to be ~$0.84 (or 6%) diluted to 2027 adj. EPS, but accretive to revenue Stock Data

growth and margins.