On Monday morning, Rexel shares posted one of the strongest gains of the SBF 120 index on the Paris Bourse, thanks to a favorable note from Berenberg, which raised its target on the electrical supplies distributor.
In a study, the financial intermediary looks back on the recent rebound in the share price, which has recovered 40% since the end of September, a recovery which, in his view, 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 the details to be provided at the June 2024 investor day.
Against this backdrop, the broker is raising its earnings estimates and price target from 27 to 33 euros, with the recommendation maintained at 'buy'.
At 9:50 am, the share price was up 1.6%, while at the same time, the SBF 120 index was down 0.4%.
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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 
