(CercleFinance.com) – Credit Suisse maintains its ‘underperforming’ opinion on Legrand, while reducing its price target to 74 euros, due to a new haircut rate assumption (in line with its recent changes in the sector).
Before the publication for the second quarter, the broker raised its operating profit estimates by around 10% for 2022-24, mainly thanks to currency effects and better than expected price developments.
If it considers Legrand as a ‘high quality franchise in the attractive field of electrification’, Credit Suisse points to cyclical risks in the residential sector, a limited potential for improving margins and a risk of intensifying competition.
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