Barclays backs grid, AI-exposed electricals as Mideast risks rise

Rexel SA

13/04/2026 09:39

** Barclays favours European electrical equipment makers with high infrastructure capex over those with construction market exposure, drawing on the 2022/23 playbook as the Middle East conflict threatens to push up energy costs and disrupt supply chains

** The brokerage upgrades Schneider Electric SCHN.PA to overweight and ABB ABBN.S to equal weight, while downgrading Legrand LEGD.PA to equal weight and Rexel RXL.PA to underweight

** "Big AI and grid capex plans shouldn't be derailed by the Middle East conflict, and delays based on supply chain challenges will likely result in a return to strong pricing power for equipment providers," it says

** Barclays flags clear risks within construction market demand, with Legrand and Rexel each deriving more than two-thirds of sales from construction markets, presenting a negative earnings risk skew for both

** Citigroup, on the other hand, downgrades ABB to "neutral" from "buy" as shares approach all-time highs and valuation appears fair

COMPANY
RATING
OLD RATING
PT
OLD PT
SCHNEIDER ELECTRIC
OVERWEIGHT
EQUAL-WEIGHT
EUR 305
EUR 270
ABB
EQUAL-WEIGHT
UNDERWEIGHT
CHF 67
CHF 51
LEGRAND
EQUAL-WEIGHT
OVERWEIGHT
EUR 144
EUR 175
REXEL
UNDERWEIGHT
EQUAL-WEIGHT
EUR 29
EUR 33

 (Reporting by Gianluca Lo Nostro and Orest Dovhan)

 ((gianluca.lonostro@thomsonreuters.com))