Analysts maintained a positive outlook on Rexel, citing improved margins, ongoing digital transformation, and strong capital returns, resulting in an unchanged consensus price target at €28.32.
Analyst Commentary
- Bullish analysts raised targets in response to improved margin expansion and sustained profitability in core markets.
- Upward revisions reflect confidence in Rexel’s ongoing digital transformation and operational efficiency gains.
- Robust cash generation and disciplined capital allocation underpin analysts’ positive outlook.
- Recent capital returns, including share repurchases and dividend policy, increase shareholder value and support higher targets.
- Neutral-rated analysts cite steady but unspectacular industry demand, warranting only modest target raises despite solid fundamentals.
What's in the News
- Rexel confirmed stable to slightly positive same-day sales growth guidance for 2025, with profitability action plans and North America performance expected to offset weaker European activity.
- Rexel and ARGAN inaugurated a new sustainable heating system at the Cestas logistics centre, featuring a hybrid electric heat pump and green gas solution, reducing energy consumption by a factor of 7 and CO2 emissions by a factor of 14, improving energy efficiency and supporting the transition to green energy.
Valuation Changes
Summary of Valuation Changes for Rexel
- The Consensus Analyst Price Target remained effectively unchanged, at €28.32.
- The Future P/E for Rexel remained effectively unchanged, moving only marginally from 12.18x to 12.22x.
- The Discount Rate for Rexel remained effectively unchanged, at 8.77%.
Disclaimer
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