(CercleFinance.com) – HSBC announced on Thursday that it had downgraded its recommendation on Schneider Electric to ‘hold’ from ‘buy’ previously, following the stock’s recent good stock market performance.
In a research note, the broker highlights that the electrical equipment specialist has outperformed its sector index, the FTSE World Europe Industrials, by around 15% since its lows in October 2023, in particular thanks to the well-functioning investor day. welcomed last November.
However, he cannot help but point out that the group unveiled second-half results and 2024 prospects last week without much surprise, which did not slow down the share’s revaluation movement.
If it raises its price target from 190 to 205 euros, the broker emphasizes that the latter only shows a limited appreciation potential in the short term (less than 5%), which leads it to recommend to investors to adopt a more long-term perspective.
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