Schneider: UBS convinced by CMD

(CercleFinance.com) - After the CMD organised by Schneider Electric, UBS analysts are confident about the group's prospects.


As a result, the broker has confirmed its buy rating on the share, along with a 12-month target price of 83 euros.

In essence, the electrical equipment and systems specialist's sales should be boosted by digitisation (and connected objects), cross-selling, services (12% of sales at present, reporting strong growth) and software (particularly with the acquisition of Aveva). Over the medium term this is expected to outperform GDP growth.

At the same time, Schneider should be able to improve its operating margin by over 200 basis points thanks to a combination of portfolio optimisation, gains in productivity and price increases. UBS considers that such targets are credible, although they are not yet integrated by the consensus.


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