Legrand's analyst price target has increased from €142.33 to €143.94, as analysts point to higher data center exposure and expected margin improvements as key drivers behind the positive outlook.
Analyst Commentary
Recent analyst actions have reflected growing optimism around Legrand, with upward revisions to price targets and ratings. This sentiment is driven by structural shifts in the company's end markets and expectations for stronger execution.
Bullish Takeaways- Bullish analysts highlight Legrand's significant increase in data center exposure. This segment has grown from 5% to over a quarter of revenue in the last decade, supporting a positive growth outlook.
- Upside potential is seen in valuation due to raised price targets. Several analysts now see the stock valued between EUR 150 and EUR 167.
- Improving operating margins and expectations of further margin expansion are viewed as key drivers for share price appreciation.
- Resumption of coverage by major institutions, such as JPMorgan, and inclusion on Analyst Focus Lists underline confidence in Legrand's execution against consensus expectations.
- Bearish analysts may caution that much of the growth optimism is now reflected in current valuations following multiple upgrades.
- There are concerns about Legrand maintaining its momentum in data center-related markets as competition intensifies.
- Risks remain around execution, particularly regarding the ability to translate end-market exposure into sustained, profitable growth.
What's in the News
- From April 1, 2025 to June 30, 2025, Legrand repurchased 452,500 shares for €46.47 million, completing the buyback announced on March 31, 2025. In total, 475,000 shares were repurchased for €48.66 million (Key Developments).
- Legrand's Board of Directors is scheduled to meet on July 30, 2025, with plans to adopt the consolidated financial statements for the first half of 2025 (Key Developments).
Valuation Changes
- The consensus analyst price target has risen slightly from €142.33 to €143.94.
- The discount rate has increased marginally from 8.80% to 8.89%.
- Revenue growth expectations have edged down, moving from 7.30% to 7.25%.
- The net profit margin is projected higher, up from 14.07% to 14.45%.
- The future P/E ratio has decreased modestly from 29.99x to 29.65x.
Disclaimer
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