SCHNEIDER ELECTRIC : Deutsche Bank downgrades to 'hold
March 06, 2024 at 05:38 am EST
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Deutsche Bank announced on Wednesday that it had downgraded its recommendation on Schneider Electric from 'buy' to 'hold', with an unchanged target of 200 euros.
In its note, the broker questions the appropriateness of any profit-taking on the stock after it has risen by 16% this year, 36% over the past 12 months and 66% since it raised its recommendation to 'buy' in September 2022.
DB also points out that the share is now trading at a P/E of 25x, well above its historical average, which he believes leaves little room for disappointment.
However, he explains, the growth targets set by the group may seem somewhat ambitious at a time when demand is slowing down, order backlogs are lengthening over time, and the momentum in automation is less dynamic than among other players in the sector.
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Schneider Electric SE leads the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructures and Industries.
With a presence in more than 115 countries, Schneider Electric SE is the undisputed leader in power management - medium voltage, low voltage and secure energy, and automation systems. The company provides integrated efficiency solutions that combine energy management, automation and software.
The ecosystem it has built allows it to collaborate on its open platform with a large community of partners, integrators and developers to offer its customers both control and operational efficiency in real time.
Net sales are distributed geographically as follows: France (3.9%), Western Europe (16.8%), the United States (19.9%), North America (23%), China (8.6%), Asia/Pacific (19.3%) and other (8.5%).