Legrand: RBC upgrades stock

(CercleFinance.com) - RBC announced on Monday that it had upgraded its Legrand shares from 'Underperform' to 'Sector perform', with a target price raised from E87 to E113.


After the underperformance that has weighed on the stock since end-2023, the analyst believes that the adverse elements weighing on the manufacturer of small electrical equipment are now beginning to fade.

The construction market cycle has bottomed out in both Europe and the US, in our view, the broker says.

At the same time, the group's exposure to the fast-growing data center sector has increased significantly, rising by five percentage points to 20% of sales, it points out.

RBC also praises the company's recurrently solid profit margins and its ability to convert earnings into cash, as well as a stock market valuation deemed 'reasonable'.


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