LEGRAND : Morgan Stanley lowers its recommendation
December 12, 2023 at 08:45 am EST
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On Tuesday, Morgan Stanley lowered its recommendation on Legrand shares from 'overweight' to 'weighted in line', with a price target reduced from 100 to 98 euros.
In a study devoted to the European capital goods sector, the broker explains that it sees 'limited' potential for improvement in consensus estimates for 2024.
While it considers the electrification of the Old Continent to remain a buoyant investment theme, the broker points to less dynamic markets in the short term, notably due to the French group's high exposure to the residential segment.
We still see Legrand as one of the best business models in the European industrial sector, and envisage a favorable medium-term scenario, but we see few catalysts likely to lead it to outperform in the immediate future", he concludes.
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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 
