Schneider: Crédit Suisse raises target price
(CercleFinance.com) - Credit Suisse has increased its 2020/21 operating profit estimates by c2.
5% "as we gain further confidence in 2021 margin target and raise our TP to E115".
The broker also confirms its Outperform rating on the share.
"We see a path to Schneider reaching 17% margin target next year without over-reliance on top-line growth," the broker says.
"We find it interesting that Schneider is pioneering analogous convergence for Buildings with the recently announced acquisition of RIB Software... We believe this places Schneider in a unique position relative to its traditional electrical equipment and building management systems peers," the broker adds.
In 2020, the Group is targeting organic sales growth of between +1% and +3%, an adjusted EBITA margin of between 16.0% and 16.3% (before currency effects and the impact of acquisitions).
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