I called nVent (NVT) a “borderline buy” call in my last write-up on this manufacturer of electrical and thermal products, and the share price performance has been pretty consistent with that view – the performance since then hasn’t been great in absolute terms (up about 3%), but the shares outperformed the broader industrial sector and comps like Eaton (ETN) and Hubbell (HUBB). Along the way, the company has delivered some exceptional organic growth on strong pricing, though the incremental margins haven’t been so impressive.
I have to admit, my view on nVent is still along the lines of “yeah, they’re okay, I guess,” and that’s not the most helpful guidance to readers. I do like nVent’s leverage to improving industrial activity (including industrial construction) and electrification, as well as improving offshore and midstream energy activity. I also see some balance sheet flexibility to do deals, and my valuation models say these shares offer above-average potential, so I’m grudgingly more positive on these shares.
Read the full article here:
nVent Looking Undervalued Despite Some Near-Term Margin Leverage Challenges
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