Hubbell (HUBB) benefits from a strong acceleration in utility, better absorption, and improved price and cost leverage, Morgan Stanley said in a Wednesday research note.

Morgan Stanley analysts said they expect Q4 earnings per share of $4.75, which stands at the high-end of the Hubbell's implied $4.61 to $4.81 guidance, aided by an organic growth of 8% and operating margin of 23.7%.

Morgan Stanley further expected 2026 and 2027 EPS of $20.10 and $21.72, driven by mid-single digit growth and 30% increments in pricing, with Hubbell estimated to see an additional margin and EPS uplift from its acquisition of DMC Power.

Morgan Stanley maintained its equalweight rating on Hubbell and raised its price target to $475 from $435.

Price: 473.09, Change: +17.75, Percent Change: +3.90