Thursday, September 27, 2018

nVent Needs To Use Its Independence To Drive Growth

As the former Technical Products business of Pentair (PNR), nVent (NVT) has some important positive characteristics, including well-regarded brands, strong share in certain segments of the enclosure, heat tracing, and electrical fastening markets, and strong margins. What it has historically lacked, though, is growth, and that needs to be one of management’s foremost priorities if nVent is going to be a significant success as an independent company.

Although I do expect better growth relative to nVent’s track record, I don’t see enough growth to drive a compelling valuation today. To me, the shares look more or less like many industrials – not really attractively priced unless you have a pretty bullish outlook on the U.S. cycle and the company’s ability to pass on higher costs.

Read more here:
nVent Needs To Use Its Independence To Drive Growth

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