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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