The analyst price target for Schneider Electric has been increased from €260.64 to €264.39. Analysts cite improving revenue growth prospects and stronger profit margins, which are supporting a more optimistic outlook.

Analyst Commentary

Recent analyst actions reflect growing optimism around Schneider Electric’s fundamentals, with several upgrades and price target increases over the past weeks. The sentiment highlights both the company’s strengths and some cautious notes regarding expectations.

Bullish Takeaways

• Bullish analysts are raising price targets on Schneider Electric, citing accelerating profit growth and confidence that earnings will continue to strengthen in the coming years.
• There is notable emphasis on the company’s exposure to secular industry trends, such as growth in data centers and a projected recovery in the European construction market. Both factors are expected to fuel above-peer organic growth rates through 2027.
• Margin expansion is expected to accelerate, which further supports upward momentum in both earnings and valuation multiples.
• Analysts remain constructive on the positive outlook for Schneider Electric’s stock, seeing the company outperforming due to robust execution and structural tailwinds.

Bearish Takeaways

• Some bearish analysts are tempering expectations, noting that current consensus valuations have already priced in much of the expected growth. This may limit further upside.
• There is caution that the company’s recent strong performance may moderate if structural tailwinds do not materialize as predicted, particularly in European construction markets.
• Reduced price targets from a few major banks signal that despite overall optimism, there is sensitivity to changes in market momentum or unexpected execution challenges.
• While growth prospects appear attractive, a more Neutral stance from some analysts suggests Schneider Electric will need to deliver consistently strong results to maintain current valuations.

What's in the News

• Schneider Electric reaffirmed its 2025 earnings guidance and is projecting organic revenue growth of 7% to 10% (Company Guidance).
• RS now offers Schneider Electric’s Altivar Solar ATV320 variable speed drives for solar-powered pumping, which enhances efficiency in remote and agricultural applications (Client Announcements).
• Schneider Electric is supporting the industry's shift to 800 VDC power systems and is collaborating with NVIDIA to develop specialized infrastructure for next-generation data centers (Product-Related Announcements).
• Viridi was named a partner in Schneider Electric's Accelerating Resilient Infrastructure Initiative, which aims to deploy resilient, clean energy microgrids with advanced battery storage across a range of U.S. infrastructure projects (Client Announcements).
• Compass Datacenters and Schneider Electric jointly engineered prefabricated, modular data center pods to accelerate AI-ready deployments and increase efficiency for data center operators (Strategic Alliances).

Valuation Changes

• Fair Value has increased slightly from €260.64 to €264.39, reflecting the updated analyst consensus.
• Discount Rate has risen marginally from 8.81% to 8.83%, indicating a slightly higher perceived risk or cost of capital.
• Revenue Growth projection has edged up from 7.20% to 7.28%, suggesting marginally improved expectations for top-line expansion.
• Net Profit Margin estimate has climbed from 13.24% to 13.95%, showing modest improvement in profit expectations.
• Future P/E ratio has decreased from 29.52x to 28.39x. This indicates that the stock is expected to trade at a lower earnings multiple moving forward.