New York, January 16, 2026, 13:50 EST — Regular session
- Eaton shares climbed roughly 3.6% in afternoon trading following HSBC’s upgrade to Buy
- Ahead of its Q4 earnings preview, JPMorgan has cut its price target on Eaton but maintained an Overweight rating
- Investors are zeroing in on “AI infrastructure” suppliers amid a market shift recalibrating data-center spending signals
Eaton Corporation plc shares climbed roughly 3.6% to $345.36 in Friday afternoon trading following HSBC’s upgrade to Buy. The bank also lifted its price target on the power-management firm from $390 to $400. HSBC highlighted Eaton’s “diversified” portfolio and noted its clear “above-market growth prospects,” while downplaying concerns tied to recent softening in the AI supply chain. (TipRanks)
This shift is significant since Eaton offers a liquid option for investors wanting exposure to data-center expansions without going after chipmakers. Much of the spending is routine stuff—switchgear, breakers, power distribution—but the size of the contracts is growing.
The trade has been volatile. At CES earlier this month, Nvidia CEO Jensen Huang claimed that “no water chillers are necessary for data centres,” a statement that unsettled cooling-related firms like Johnson Controls and Trane Technologies. Investors quickly began distinguishing between the power winners and the cooling sector losers. (Reuters)
On Friday, JPMorgan issued a second update, cutting its Eaton price target to $406 from $440 but maintaining an Overweight rating. The bank noted it’s more bullish on “growth related names into and out of the quarter” in its electrical equipment and multi-industry preview. (TipRanks)
Eaton has been driving growth through acquisitions. In November, it struck a $9.5 billion deal to acquire Boyd Corp’s thermal business from Goldman Sachs Asset Management. The goal: to boost its liquid-cooling tech, as data centers cram more computing power into smaller spaces. The deal is set to close in Q2 2026. (Reuters)
The broader market hovered near unchanged levels. The SPDR S&P 500 ETF ticked up roughly 0.1% in afternoon trading.
The analyst chatter hasn’t swung entirely in one direction. On Jan. 15, RBC dropped its price target to $399 from $432. Wolfe Research also nudged its target down, from $413 to $410. These moves come from MarketScreener’s latest tally of analyst updates.
Still, the upgrade leaves unresolved the core issue for industrial “AI picks-and-shovels”: will demand for data centers stay strong enough to support lofty multiples if orders stall or projects get delayed? A solid rally can quickly unravel if the earnings commentary turns cautious.
Macro factors are also at play. San Francisco Fed President Mary Daly described policy as being “in good place” and emphasized that any adjustments should be made cautiously. The next Fed meeting is scheduled for Jan. 27-28. (Reuters)
Next week’s calendar is shortened by the Martin Luther King Jr. Day holiday. U.S. markets will be shut Monday and reopen Tuesday. (New York Stock Exchange)
Eaton’s next major event is earnings, though the company hasn’t set a date yet. Nasdaq’s earnings calendar currently shows Jan. 30. (Nasdaq)
