Wells Fargo initiates Eaton stock coverage with overweight rating

Wells Fargo has initiated coverage on Eaton Corporation (NYSE:ETN) with an "overweight" rating and a price target of $503. The firm cited strong growth prospects, an "unprecedented" growth cycle in the electrical equipment sector, and Eaton's ability to capitalize on increasing demand for AI infrastructure in data centers. Despite the stock trading at $440, up 39% year-to-date, InvestingPro data suggests it may be overvalued relative to its fair value.