HSBC announced on Thursday that it had downgraded its recommendation on Schneider Electric from "buy" to "hold", following the stock's recent strong performance.
In a research note, the broker points out that the electrical equipment specialist has outperformed its sector index, the FTSE World Europe Industrials, by around 15% since its October 2023 lows, thanks in particular to last November's well-received investor day.
However, he can't help pointing out that last week the Group unveiled second-half results and a 2024 outlook that came as no great surprise, and which did nothing to dampen the share's upward momentum.
Although it is raising its price target from 190 to 205 euros, the broker emphasizes that the latter shows only limited appreciation potential in the short term (less than 5%), which leads it to recommend that investors adopt a more long-term perspective.
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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%).
SCHNEIDER ELECTRIC SE 
