November 9 (Reuters) – Schneider Electric shares rose among the best performers on the CAC 40 on Thursday after the group revealed its medium and long-term outlook ahead of its investor day.
On the Paris Stock Exchange, Schneider Electric shares rose 5.81% to 159.60 euros at 09:18 GMT, its strongest increase since October 2022.
The group said in a press release that it expected organic revenue growth of between 7% and 10% over the period 2023-2027.
Its adjusted earnings before interest, taxes, depreciation and amortization (Ebita) margin is expected to increase organically by around +50 basis points over the same period, Schneider said.
JP Morgan analysts recall in a note that the group previously targeted organic revenue growth of 5-8% and an organic increase in the adjusted Ebita margin of between 30 and 70 basis points.
“In our view, the group has a portfolio ideally positioned to benefit from structurally attractive markets and opportunities to contribute to the growth of the underlying market through its own initiatives,” adds JP Morgan.
“While these are four-year targets, they look more positive than we expected in the context of the broader outlook for next year, with peer feedback suggesting single-digit growth at better in 2024,” commented RBC analysts.
In the long term, Schneider Electric has confirmed that it is targeting organic revenue growth of more than 5% on average over the entire economic cycle. (Report by Gaëlle Sheehan; French version Dagmarah Mackos, edited by Kate Entringer)
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