Legrand: at the top of the CAC, Berenberg finds the stock attractive

(CercleFinance.com) - Legrand shares led the CAC 40 index on the Paris Bourse on Wednesday, benefiting from Berenberg analysts' increased optimism about the electrical equipment manufacturer.


In a lengthy study devoted to industrial stocks, the German analyst indicates that he has raised his recommendation on Legrand from 'hold' to 'buy', with a price target raised from 95 to 110 euros.

In its note, the financial intermediary justifies its upgrade by the potential for positive surprises in relation to consensus forecasts, and by the stock's recent relative underperformance.

In its view, Legrand is particularly interesting to play as a player in the data center market, an overlooked business that accounts for 15% of its sales, at a time when its growth has recently been penalized by its exposure to the residential segment, where it is more present than its peers.

At the end of the morning, the share was up 1.8%, while the CAC was nibbling away at less than 0.1%.

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