Risk Reward Update

研报英文原文证据摘录

Risk Reward Update

UpdateM

RiskRisk RewardReward– Hubbell- HubbellInc. (HUBB.N)Inc. (HUBB.N)

Bullish on Valuation, Less so on Estimates

PRICE TARGET $565.00 EQUAL-WEIGHT THESIS

Our price target is based on ~25.0x blended 2027/28 EPS of $24.71. The multiple represents ▪Positive on topline: Near-term, outsized

an MSD % premium to peers and 20%+ premium to the S&P, ahead of recent levels and exposure to growing Utility + Electrical

history. The move to MSD organic growth (vs LSD historically) argues for re-rating, as HUBB markets gives us confidence that destock

moves past destock headwinds and benefits from secular demand tailwinds (Reshoring, headwinds are clearing & placing HUBB

AI/Data Center, Electrification). firmly on the right side of MS anticipated

short-cycle bifurcation. Longer-term, we see $550.09

sustained MSD organic (vs LSD hist) behind

Consensus Price Target Distribution $483.11 $605.00 mega-trend exposure + portfolio high-

MS PT

grading.Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates ▪The challenge is Consensus already under-

writes the recovery + sustained MSD

growth.

RISK REWARD CHART ▪Utility margins remain source of downside

risk following sharp 2yr ~700 bps expansion

on price cost gains - risk is commoditized

USD $655.00$655.00(+33.64%)$655.00(+33.64%)(+33.64%) portfolio, channel destocking & already

exhausted backlog.

600 ▪Positive RaR driven by upside skew on

$565.00$565.00(+15.28%)$565.00(+15.28%)(+15.28%) valuation behind structurally higher growth

$490.12$490.12$490.12

450 Consensus Rating Distribution

50% Overweight

300 $370.00$370.00(-24.51%)$370.00(-24.51%)(-24.51%)

50% Equal-weight

0% Underweight

150 MS Rating

Source: Refinitiv, Morgan Stanley Research

JUL '25 JAN '26 JUL '26 JUL '27 Risk Reward Themes