(CercleFinance.com) – Oddo BHF confirms its neutral rating on the Legrand share with an unchanged price target of 88 euros.
Legrand published H1 results yesterday morning slightly above expectations (5% at the adjusted EBIT level).
In the second quarter, Legrand surprised by the weakness of volumes but also by the strength of the margin, estimates the analysis office. Organic revenue growth in the 2nd quarter reached only 2% (consensus at 3.6%).
In H1, volumes therefore fell by 2.7% and prices rose by 7.3%. The EBITA margin appreciated by 170bp to 22.2%, supported by the strong gap between price increases and inflation for raw materials and components (+0.3% in H1 for the latter).
‘Our 2023 and 2024 EPS are revised upwards by 1.6% on average. We integrate the latest acquisition (Teknica, 45 ME, Chile, UPS for datacenters). We now forecast for 2023 an organic growth in sales of 3.3% (of which -1.5% in volumes) and an adjusted EBIT margin of 20.1%’, underlines the analyst.
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