Schneider: deserves better, Société Générale says.
(CercleFinance.com) - In a report published this morning, Société Générale (SG) is more optimistic about Schneider Electric, whose revaluation is on track, analysts say, although this is not yet fully priced in.
SG has raised its 12 month target price raised from 80 euros to 85 euros. "Schneider is becoming more disciplined and return-focused," SG analysts believe, who welcome the group's better financial discipline, particularly in terms of M&A.
"Its solutions strategy is being repaired, and stagnant earnings growth is giving way to consistent margin expansion and stronger top-line growth," they add.
In short, SG says, "We think the continuous improvement in the quality of the portfolio over the last two to three years has gone unnoticed. Schneider has divested non-core assets, reduced its exposure to utilities, diversified its focus in China and IT, and strengthened its leadership in low voltage," its report states. Not to mention software (with Aveva) and the "Internet of Things" (with EcoStruxure).
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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.
SG has raised its 12 month target price raised from 80 euros to 85 euros. "Schneider is becoming more disciplined and return-focused," SG analysts believe, who welcome the group's better financial discipline, particularly in terms of M&A.
"Its solutions strategy is being repaired, and stagnant earnings growth is giving way to consistent margin expansion and stronger top-line growth," they add.
In short, SG says, "We think the continuous improvement in the quality of the portfolio over the last two to three years has gone unnoticed. Schneider has divested non-core assets, reduced its exposure to utilities, diversified its focus in China and IT, and strengthened its leadership in low voltage," its report states. Not to mention software (with Aveva) and the "Internet of Things" (with EcoStruxure).
Copyright (c) 2017 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.