Deutsche Bank analysts downgraded Hubbell (NYSE:HUBB) from Buy to Hold, adjusting their price target to $473 from $493. The decision came after a 24% increase in Hubbell’s stock price over recent months, bringing it close to the prior target.

The downgrade was part of a re-evaluation of the company’s valuation framework, which now applies a 25x next-twelve-month (NTM) price-to-earnings multiple, down from the previous 26x.

The analysts highlighted potential upside risks, including channel inventory normalization, accelerating demand in utility transmission and distribution, and stronger-than-expected margin execution. However, downside risks were also noted, such as continued destocking by utility customers, challenges in further price increases leading to price/cost headwinds, and limited accretive capital allocation opportunities.