Analyst Note| Joshua Aguilar |
Nothing in narrow-moat rated Hubbell’s third-quarter results materially alters our long-term view of the firm. We marginally decreased our full-year adjusted EPS projection by 3%-plus to $8.48 from $8.78, in line with management’s downwardly revised guidance. Nonetheless, we raise our fair value estimate to $186 per share from $185. The raise is solely due to time value of money. Furthermore, while we cut our EPS projections based on supply chain and raw material-related margin headwinds, we minimally increased our sales projections for full-year 2021. We now expect $4.71 billion of sales in 2021 relative to our prior expectations of $4.69 billion.