RBC upgrades Legrand to 'Sector Perform' as headwinds ease

Legrand SA

24/02/2025 07:57

** RBC upgrades Legrand to "sector perform" from
"underperform", as headwinds from cyclical pressure in the
construction market ease and due to growing exposure to the
fast-growing datacenter market 
    ** "The construction cycle in Europe and North America
appears to have troughed after two years of weak demand," RBC
says    
    ** In 2024, datacenters represented 20% of Legrand's sales,
helping the company overcome weak European and North American
construction market  
    ** "Further strong organic growth in DC (datacenter) looks
likely for 2025," broker adds
    ** Legrand reported strong full-year results in February,
beating consensus and forecasting organic sales growth of 6% to
10% in 2025 
    ** RBC raises its price target by nearly 30% to EUR 113 from
EUR 87
    ** Out of 20 analysts that cover Legrand, 11 rate the stock
"strong buy" or "buy", ​six rate "hold" and three rate the stock
"strong sell" or "sell"

    

 (Reporting by Hugo Lhomedet)
 ((Hugo.Lhomedet@thomsonreuters.com;))