Barclays Cuts nVent Electric Price Target After Q4 Results - nVent Electric (NYSE:NVT)

Barclays analyst Julian Mitchell lowered the price target on nVent Electric PLC NVT to $48 (an upside of 33.1%) from $51 and maintained an Overweight rating on the shares post the Q4 results.
He believes the company's cash flow and deployment are being underappreciated.
CL King analyst David Silver maintains a Neutral rating on nVent Electric following the quarterly results.
Silver mentions that above-forecast EPS results reflected strong organic growth, partly offset by margin-depressing inflation in labor, metal, and logistics costs.
The analyst adds that the electrical products industry continues to shift more decisively towards higher secular growth tied to connectivity, protection, and efficiency.
Recently, the company reported fourth-quarter sales growth of 28% year-over-year to $669 million, +24% on an organic basis, beating the consensus of $ $608.39 million.
Adjusted EPS improved by 16% Y/Y to $0.50, beating the consensus of $0.48.
Q4 operating income was $89 million, up from $74 million in 4Q20, and on an adjusted basis, segment income was $110 million, up from $97 million. Adjusted margin contracted by 210 bps to 16.5%.
For FY21, the company reported a free cash flow of $334 million, 100% conversion of adjusted net income.
FY22 Outlook: nVent Electric expects reported sales growth of 6% to 10% and Organic growth of 6% to 9%.
It expects EPS of $1.75 to $1.85; and Adjusted EPS of $2.10 to $2.20, versus $$2.19 consensus.
Price Action: NVT shares are closed higher by 3.58% at $35.85 on Wednesday.

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