LG Energy Solution BESS Qualifies as NVIDIA DSX Ready

Analysts recommend an investment strategy of trading individual electronics stocks around earnings cycles, highlighting DELTA and SMT as standout plays benefiting from AI and data center technology. Nattapon Kamthakrua, Assistant Managing Director of the Investment Analysis Department at Yuan Ta Securities (Thailand) Company Limited, told Than Hoon that the electronics sector is a group with outstanding profit growth in the Thai stock market, with all five companies under coverage having forward orders spanning roughly one to two production cycles, and he expects the group's third-quarter 2026 results to grow continuously both quarter-on-quarter and year-on-year. DELTA stands out in cooling systems and power-related components, while KCE is expanding into humanoid technology and HANA is focusing on solid state cooling technology for data centers. SMT stands out for its ample remaining production capacity and its chance to swing back to profit after a loss in 2025. However, the P/E of electronics stocks is higher than the SET average of about 15 to 16 times, with DELTA trading at roughly 60 times 2027 earnings, KCE at about 50 times, and SMT at around 19 times. The analysts therefore recommend speculative buying of DELTA, KCE, CCET, and HANA, and a buy on SMT. Meanwhile, Sureeporn Teewasuwet, Assistant Managing Director of the Securities Analysis Department at Finansia Syrus Securities Public Company Limited, told Than Hoon that demand from the AI and data center groups has come in very strong, pushing prices of components, chips, memory, and PCBs higher, and this is expected to benefit the operating results of the three electronics companies under coverage from the third quarter of 2026 through the first half of 2027. DELTA is expected to begin recovering in the third quarter of 2026 both quarter-on-quarter and year-on-year, with a chance of setting a new record high in the fourth quarter of 2026, with a target price of 290 baht. KCE is expected to benefit from a roughly 10% increase in printed circuit board selling prices, fully recognized for a full quarter, with a target price of 61 baht, while HANA has a target price of 53 baht. She also warned investors to watch the risk of more new supply entering the market in the second half of 2027, which if it balances with demand would pressure prices of components, chips, memory, and PCBs downward and drag the electronics group's operating results into a correction in 2028 before returning to a normal growth cycle in 2029.

Eaton CEO Paulo Ruiz told investors at Morgan Stanley's 14th Annual Laguna Conference on September 16 that the company is targeting the high end of its 11%–13% organic growth guidance for 2026, sending shares up about 7.9% over five trading days to close at $424.77 on September 18. Ruiz said Eaton expects to have added roughly $10 billion in revenue between 2024 and 2026, about 10 times the top-line growth of the prior decade, with data center demand driving most of that increase as orders climbed about 85% and revenue rose roughly 65%. Eaton's globally announced project pipeline has accelerated to 342 gigawatts from the 307 gigawatts cited on the second quarter earnings call, and the company raised projected 2026 sales for its Boyd Thermal unit to $1.8 billion from $1.1 billion. Eaton reported second quarter 2026 revenue of $8.53 billion, up 21% year over year, with adjusted earnings per share of $3.15 and segment margins of 23.1%. Analysts responded positively, with Baird initiating coverage at Outperform with a $500 target, RBC Capital raising its target to $512 from $484, Evercore ISI upgrading to Outperform with a $502 target, and BMO Capital and Citi moving to $487 and $485 respectively, giving Eaton an average 12-month price target of $510.

Wall Street analysts are sharply divided on GE Vernova, with price targets on the power and grid technology company spanning from $470 to $1,450 a share. GLJ Research analyst Gordon Johnson recently initiated coverage with a sell rating and a $470 price target, about 50% below the stock's recent trading price of around $940 and below its 52-week low of $530 hit last November, citing a roughly 39-times forward earnings multiple he considers unjustified for a cyclical company. Guggenheim's Joseph Osha holds the Street-high target of $1,450, nearly 55% above the recent share price, based on hyperscaler demand for transformers and gas turbines, margin expansion from a higher-priced backlog, and multi-decade cash flow from long-term service agreements. The average analyst price target is over $1,200 a share, and of the nearly 40 analysts covering the stock, 30 rate it a buy or higher while all others except Johnson rate it a hold. The company's orders surged 88% in the second quarter to $24.2 billion, it booked $5 billion of data center orders in the first half, and its gas power equipment backlog and slot reservation agreements grew to 116 GW from 100 GW, with CEO Scott Strazik expecting 125 GW by year-end.