GS upgrades Legrand as 'depressed valuation' gives buying opportunity

Legrand SA

Yesterday 07:08

** Goldman Sachs upgrades French electrical equipment manufacturer Legrand LEGD.PA to "buy" from "neutral" as it sees data centre risks as already priced into the stock
** The broker notes the company is better positioned for the transition to 800-volt direct current technology in data centers than initially anticipated
** "We therefore see Legrand's depressed valuation as an opportunity to buy the stock," GS says, pointing to its discount to global electrical peers
** YTD, Legrand shares are flat vs larger peer Schneider Electric's SCHN.PA gains of 4% -- LSEG data
** Up until Tuesday's close, Legrand shares lost about 7% in value vs the closing price on Sept 30 -- LSEG data
** The brokerage adds that the group has a track record of high margin resilience through building cycles giving confidence in earnings estimates despite subdued construction biz
** Out of 20 analysts covering Legrand, 17 rate it "strong buy" or "buy", ​2 "hold" and 1 "sell" -- LSEG data 

(Reporting by Hugo Lhomedet)
((hugo.lhomedet@thomsonreuters.com))