Aug. 18 at 12:28 AM
Electrical equipment companies delivered a strong Q2 2026, with underlying growth accelerating to about 6%, the best since Q1 2023. Orders jumped 19%, pushing book-to-bill to 1.16x and signaling continued cyclical momentum. AI-related markets led growth, with Power Generation, Low Voltage Electrical and Transmission & Distribution expanding 15%-20%, while Construction & Mining, Aerospace and Defense also remained strong.
Gates Industrial: Wolfe rates it Outperform with a
$33 target, implying 19% upside. The firm expects EBITDA margins of at least 23.5% in H2 2026 and above 24% next year, supporting roughly
$2 EPS in FY2027. Shares rose 9% after earnings, but Wolfe sees further upside.
Dover: Wolfe rates it Outperform and raised its target to
$267 from
$264, implying 29% upside. The firm expects a path toward
$12 EPS in FY2027, supported by stronger orders, sales and margins, and recommends buying the recent dip.
$GTES $DOV