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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