REXEL : Berenberg raises its target, maintains 'buy' recommendation
December 18, 2023 at 05:41 am EST
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Berenberg announced on Monday that it had raised its target price for Rexel from €27 to €33, with its recommendation maintained at 'buy'.
In a study, the financial intermediary looks back on the recent stock market rebound of the electrical equipment distributor.., which has recovered 40% since the end of September, a turnaround which it believes shows that long-term investors have regained the upper hand over short sellers, whose strategy seemed to have come to fruition in the third quarter.
For his part, the German analyst is convinced that the improvement in margins seen in recent years is more 'structural' than 'cyclical' in nature, which leads him to look forward to further details to be provided at the June 2024 investor day.
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Rexel is the world's leading professional distributor of electrical equipment. Present in 19 countries, the Group offers electrical products and solutions to professionals for buildings and for residential, industrial, and tertiary infrastructures, through a multi-brand network of 1,972 outlets. The products and solutions marketed by the group are in response to demands for electrical equipment, lighting, security, climate control, communication, industrial automation, and energy savings. The activity is organized around 3 markets:
- tertiary: malls, sports facilities, hospitals, airports, etc.;
- industry: system integrators, production site builders and equipment producers;
- residential: comfort, security, and home automation.
Net sales are distributed geographically as follows: Europe (50.2%), North America (43%) and Asia/Pacific (6.8%).
REXEL 
