Analyst Note| Joshua Aguilar |
Nothing in narrow-moat rated Hubbell’s latest second-quarter results materially alters our long-term view of the firm. While year-to-date outperformance relative to prior guidance prompted management to revise the guide, and us to raise our 2021 full-year revenue and earnings projections, these effects were more than offset by the implementation of our probability-adjusted U.S. tax rate of 26% in 2022 in our model. Nonetheless, we were pleased with the firm’s results. We raise our fair value estimate by $1, to $185 from $184 previously.