Jefferies upgrades Legrand as data centre prospects rise

Legrand SA

13/10/2025 07:57

** Jefferies upgrades French electrical equipment maker Legrand LEGD.PA to "buy" from "underperform", citing its growing data centre business and signs of a cyclical rebound

** It says Legrand is a "uniquely positioned DC play", with data centre revenue set to reach 36% of group total by 2030, driven by 11% compound annual growth rate

** Jefferies adds the non-data centre business, about 60% of sales, is at a cyclical trough but shows emerging recovery signals in its key U.S. and European markets

** The brokerage's FY 2026/27 earnings estimates are 8% above consensus, and it views Legrand's 2030 targets as conservative

** The broker says the shares are undervalued and do not yet reflect the group's changing profile towards high-growth data centres

** Out of 20 analysts that cover Legrand, 13 rate the stock "strong buy" or "buy", ​six "hold" and one "sell" - LSEG data

(Reporting by Hugo Lhomedet)

((hugo.lhomedet@thomsonreuters.com))