Cantor Fitzgerald has raised its price objective on Powell Industries (NASDAQ:POWL) to $481.00 from $427.00, while retaining a Neutral rating on the stock. The firm’s update follows Powell’s fiscal first-quarter 2026 results and reflects measured upward revisions to near-term estimates, according to Cantor Fitzgerald analyst Manish Somaiya.
At the time of the note, Powell shares were trading at $538.81, putting the stock substantially above Cantor’s new target and near a 52-week high of $569.80. Data from InvestingPro flagged the stock’s relative strength index (RSI) as indicating overbought conditions.
The valuation change is tied to several operational developments reported by the company. Cantor cited increased new order activity, an improved backlog, clearer near-term revenue visibility and continued strong operating execution as the key drivers behind modest upward estimate adjustments. Those factors, the firm said, supported a slightly higher valuation multiple for Powell, though the multiple remains conservative when compared with broader industrial peers.
Powell’s reported diluted earnings per share for the last twelve months stood at $15.40, translating to a price-to-earnings ratio of 34.24. InvestingPro characterizes that multiple as high relative to near-term earnings growth expectations.
The research note also highlighted Powell’s performance year-to-date, noting a 65% gain in the company’s share price. Cantor Fitzgerald maintained its Neutral rating despite the target increase.
Operational and quarterly specifics were also part of the backdrop to the analyst action. Powell Industries began fiscal 2026 with an EPS of $3.40 for the quarter, a result that exceeded analyst consensus of $2.94. Total revenue for the period rose 4.4% year-over-year to $251 million, a figure that nevertheless fell slightly short of revenue expectations.
While the revenue miss tempered parts of the picture, the stronger-than-expected EPS and the uptick in orders and backlog contributed to investor optimism about the company’s near-term trajectory. Cantor Fitzgerald’s decision to nudge up its valuation multiple reflects those operational improvements, even as the firm characterizes the adjusted multiple as conservative versus peers.
Investors and market participants now face a juxtaposition: Powell’s fundamental indicators in the latest quarter—especially the EPS beat and backlog trends—have improved, yet the stock is trading above the newly raised target and at a high P/E on recent earnings. Technical signals showing overbought conditions add another dimension to the risk-reward profile.
Given these mixed signals, Cantor Fitzgerald’s Neutral stance suggests caution - acknowledging better operating momentum while recognizing valuation and market-price positioning that temper upside under the firm’s current assumptions.