On Wednesday, Royal Bank of Canada downgraded its opinion on Legrand shares from 'performance in line with the sector' to 'underperform', with the target price maintained at 80 euros.
In a research note published this morning, the broker explains that market forecasts could be at risk due to the expected contraction of the group's main markets in 2024.
In the United States, it points out, there is no sign of a turnaround in the office property sector, while the US residential segment is not doing much better in view of the downturn in housing starts this year, continues the broker.
In Europe, building permit data are also pointing in the direction of a deterioration, continues RBC, which points out that such a configuration suggests an organic decline in activity next year.
'Despite its quality assets and long-term appeal, Legrand today appears less attractive than other stocks within our coverage area at present', concludes RBC.
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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 
