nVent Electric downgraded to hold as shares near fair value despite strong growth and raised revenue guidance.

nVent Electric plc shares have been downgraded to hold as their price-to-earnings ratio approaches 38x, indicating the stock is near fair value. The company shows strong execution with over 34% EPS growth and more than 50% revenue growth driven by its System Protection segment. However, EBITDA margins are pressured by tariff costs and challenges from M&A integration. Revenue guidance for 2026 has been raised to nearly $5 billion with EPS estimates up to $4.5, but margin expansion is expected to remain limited. Risks include potential slowdowns in AI-related capital expenditure and disruptions from oil shocks affecting supply chains and valuation.