Mizuho Cuts Hubbell Price Target by 8% After Q4 Results

Mizuho analyst Brett Linzey lowered the price target on Hubbell Inc HUBB to $220 (an upside of 17.5%) from $240 and maintained a Buy rating on the shares.
The analyst dropped the price target to reflect the broader valuation reset of the group and equity market. However, the analyst says Hubbell reported a "strong" Q4 and outlook.
Recently, the company reported its fourth-quarter net sales growth of 19.9% year–over–year to $1.1 billion, missing the consensus of $1.22 billion.
The operating income increased by 17.2% Y/Y to $134.3 million, and margin contracted 30 bps to 12.2%
Adjusted EPS was $2.07, missing the consensus of $2.08.
Net cash provided from operating activities was $233 million for Q4, versus $156 million in the comparable period of 2020. Free cash flow was $206 million.
FY22 Outlook: The company expects EPS from continuing operations of $7.75-$8.25; and adjusted EPS of $8.75-$9.25 versus $9.18 consensus.
Price Action: HUBB shares are higher by 0.31% at $187.27 on the last check Monday.