Legrand: Oddo upgrades stock
(CercleFinance.com) - Broker Oddo BHF has upgraded its rating on the Legrand share from "neutral" to "buy," simulataneously increasing its target price from 64 euros to 93 euros, after the the electrical equipment supplier increased forecasts for sales growth and its EBITA margin.
While it acknowledges that Legrand did not perform optimally in 2020, with its geographical exposure, it foresees a better-than-expected recovery in 2021, boosted by renovation, data centers and - indirectly -recovery plans.
The analyst adds that despite the stock's recent rebound, it is still lagging some of its peers (especially Schneider Electric), noting that the stock is trading at a 2021 EV/EBIT multiple of 19.5x.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.