Update shared on 10 Nov 2025
Fair value Decreased 1.35%Legrand’s analyst price target has been adjusted downward from approximately €143.94 to €141.99. Analysts cite a modest revision in fair value due to evolving sector dynamics and recent rating changes.
Analyst Commentary
Recent analyst actions reveal a mix of optimism and caution regarding Legrand’s future performance. The sentiment is driven by shifts in perceived market opportunity, valuation changes, and evolving sector exposure.
Bullish Takeaways
- Analysts highlight Legrand’s significant increase in data center exposure, rising from 5% to 27% over the past decade. This is viewed as a strong growth catalyst.
- Multiple upward revisions to price targets signal confidence in Legrand’s ability to exceed consensus estimates. This reflects an expectation of robust execution and market outperformance.
- Major firms have resumed coverage with overweight ratings and added Legrand to focus lists, citing further upside potential.
- The company’s proactive positioning in high-growth verticals is viewed positively, contributing to long-term value creation and sustained revenue expansion.
Bearish Takeaways
- Some analysts have downgraded Legrand’s rating from Buy to Hold, citing a more cautious stance on valuation following the recent share price appreciation.
- There is concern that near-term sector dynamics could limit upside, leading to modest downward adjustments in price targets.
- While execution remains strong, heightened expectations may set a higher bar for outperformance. This could increase the risk of disappointment if growth moderates.
What's in the News
- Legrand SA has confirmed its earnings guidance for the full year 2025 and is projecting sales growth of 10% to 12% excluding currency effects (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased slightly from €143.94 to €141.99. This reflects a modest reduction in the consensus price target.
- Discount Rate has risen from 8.89% to 9.20%, indicating a higher risk or required rate of return in updated models.
- Revenue Growth projections have increased marginally, moving from 7.25% to 7.32%. This signals slightly improved expectations for top-line expansion.
- Net Profit Margin has fallen slightly from 14.45% to 14.29%, indicating a minor downward revision in profitability forecasts.
- Future P/E Ratio has declined to 29.19x from 29.65x, suggesting a modest decrease in valuation multiples applied to future earnings.
Disclaimer
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