US Electrical Equipment & Multi-Industry "EE/MI Morning Note - TT previe..."

研报英文原文证据摘录

US Electrical Equipment & Multi-Industry "EE/MI Morning Note - TT previe..."

, including 42% who expect an increase of 26%

or more. We view results as a positive read on the demand outlook for companies in our

coverage that sell into the AI supply chain (VRT, MOD, NVT, GEV, TT, JCI). We also see

increased AI adoption among industrials as a positive indicator of future financial

performance, assuming that AI adoption can result in meaningful benefits to revenue

generation, productivity and profitability. (> Access Dataset).

FLS/Nuclear- FLS shares have been a bit volatile this week, which we think highlights

the lack of conviction in 2H inflection following the lower than expected 1Q organic.

Our sense is we don't expect negative surprises with respect to organic growth (like last

quarter), which we view as positive for shares (link). Consensus organic growth

expectations for the full year are already relatively low, currently at -1% / the low end of

the guided range. We would also highlight that earlier this week, the Department of

Energy issued a conditional loan commitment for up to $17.5 billion to bolster the

domestic nuclear supply chain, supporting 10 new large nuclear reactors with complete

designs under construction by 2030 (link). Based on company disclosures, assuming

each nuclear reactor is 1 GW of power and $100+ million of content per GW, this would

represent a $1 billion+ revenue opportunity over time. Outside of FLS, we think this

nuclear opportunity screens positively for EMR and CR. We also see this as a positive for

GEV via its steam turbine/generator equipment, controls, outage/services, grid

equipment, transformers, switchgear, and broader electrification content.

Macro updates- Yesterday, we received updates on US Durable Goods and Kansas City