Legrand: leads the CAC, Morgan Stanley more optimistic
March 28, 2024 at 06:54 am EDT
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On Thursday, Legrand shares topped the CAC 40 index on the Paris Bourse, thanks to a favorable recommendation from analysts at Morgan Stanley.
At around 11:30 a.m., the stock was up 1.8%, compared with a 0.6% gain for the CAC and a 0.2% decline for the STOXX Europe 600 Industrials index of European industrial stocks.
Morgan Stanley, which has upgraded its recommendation on the stock from 'in-line weighting' to 'overweight', believes that Legrand remains one of the few quality names in the sector.
The research firm also highlights Legrand's 'undemanding' valuation, given that its organic growth should accelerate to around 5% over the period 2025-2026, driven by its activities in the home and data centers.
Its price target has therefore been raised from €100 to €110.
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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 
