Analysts have adjusted Rexel's price target modestly downward from EUR 31 to EUR 30, citing limited pricing gains in recent quarters and the recovery in the share price already being reflected.
Analyst Commentary
Recent coverage of Rexel reflects a more cautious stance from analysts, with updates highlighting ongoing challenges and recalibrated expectations for the business.
Bullish Takeaways- Some analysts continue to recognize the potential for share price support, citing resilience in Rexel’s underlying business and positive execution so far this year.
- There remains optimism for longer-term growth drivers, with improved operational efficiency and discipline helping to navigate a complex market environment.
- Price targets, while adjusted, still imply room for potential upside from current levels. This indicates that the company is not viewed as fully valued in all scenarios.
- Bearish analysts point to the lack of meaningful incremental pricing traction in recent quarters, which is limiting the scope for upward revisions in expectations.
- Much of the anticipated recovery in the European residential market is already reflected in the current share price. This reduces near-term upside potential.
- Downgrades in overall ratings and price targets underscore the view that the stock’s previous outperformance and pricing power may have run their course for now.
- There is concern that further gains are unlikely without clear signs of improved market conditions or new drivers for earnings growth.
What's in the News
- Rexel S.A. confirmed earnings guidance for fiscal year 2025, now expecting slightly positive same-day sales growth. This is a revision from its previous "stable to slightly positive" outlook (Key Developments).
- The Board Meeting on October 14, 2025, will consider and approve the nomination of Robert Schuchna as a nonindependent member of the Board, effective October 15, 2025. This follows the recommendation from the Nomination, Governance and CSR Committee (Key Developments).
Valuation Changes
- The Fair Value Estimate remains unchanged at approximately €29.96.
- The Discount Rate has risen slightly from 8.50% to 8.59%.
- Revenue Growth projections are stable, holding at around 2.65%.
- The Net Profit Margin is virtually unchanged, staying near 3.95%.
- The Future P/E Ratio has increased marginally from 13.62x to 13.65x.
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