Morgan Stanley on Thursday raised its recommendation on Legrand shares from 'in-line weighting' to 'overweight', believing that Legrand remains one of the few quality names in the sector.
The research firm points to an 'undemanding' valuation, given that organic growth should accelerate to around 5% over the 2025-2026 period, driven by its home equipment businesses.
In particular, the analyst expects the electrical equipment manufacturer to be more optimistic than expected about its margin targets at its Investor Day on September 24, while emphasizing its data center activities.
Its price target has consequently been raised from €100 to €110.
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Legrand is the global specialist in electrical and digital building infrastructure. Its comprehensive range, suitable for the commercial, industrial, and residential segments of the low voltage market, makes Legrand a benchmark for customers worldwide. Close to its markets and focused on its customers, Legrand has commercial and industrial operations in over 90 countries. The group benefits from solid, long-term growth levers.
Geographically, 41.4% of net sales are generated Europe region, 38.6% in North and Central America and 20% in the rest of the world.
In terms of product offering, 36% of its sales come from products with enhanced value in use (datacenters, connected products in the Eliot program, and energy efficiency programs).
In addition, the group benefits from very solid social and technological megatrends which will support its long-term development.
LEGRAND 
