LEGRAND : Oddo confirms its recommendation on the stock
April 03, 2023 at 04:00 am EDT
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Oddo maintains its 'neutral' rating on Legrand shares, with an unchanged target price of 86 euros.
"Legrand should report a relatively solid Q1, in terms of both sales growth and adjusted EBIT margin", according to the analyst, who anticipates organic sales growth of 4.3%, including -1.2% from volumes and 5.5% from price impact.
According to Oddo, the Group should confirm its 2023 guidance, i.e. organic growth of -1/+3% and an adjusted EBITA margin of around 20%, before the impact of acquisitions and Russia.
We have left our estimates unchanged overall, and anticipate organic sales growth of 0.8% for 2023 and an adjusted EBITA margin of 19.7%", says the broker.
Oddo adds that it will be "attentive to comments, during the conference, on trends, notably on DYI, but also by region, as well as on possible new acquisitions".
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Legrand is the global specialist in electrical and digital building infrastructure. Its comprehensive range, suitable for the commercial, industrial, and residential segments of the low voltage market, makes Legrand a benchmark for customers worldwide. Close to its markets and focused on its customers, Legrand has commercial and industrial operations in over 90 countries. The group benefits from solid, long-term growth levers.
Geographically, 41.4% of net sales are generated Europe region, 38.6% in North and Central America and 20% in the rest of the world.
In terms of product offering, 36% of its sales come from products with enhanced value in use (datacenters, connected products in the Eliot program, and energy efficiency programs).
In addition, the group benefits from very solid social and technological megatrends which will support its long-term development.
LEGRAND 
