AlphaValue announced on Tuesday that it had upgraded its recommendation on Rexel shares to 'accumulate' from 'reduce', with a target price raised from 23.5 to 24.7 euros.
In a research note, the consultancy supports its optimism with the better-than-expected half-year results published by the electrical supplies distributor, as well as the upward revision of its full-year targets.
The Paris-based consultancy also cites the favorable effects of the massive adoption of electrification.
We believe that Rexel should continue to benefit from the solid demand for electrical equipment driven by the rise of green energy and energy efficiency", it explains.
AlphaValue adds that the French group should be able to continue passing on inflationary pressures on prices to its customers, thanks to the high level of expertise of its teams.
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Rexel is the world's leading professional distributor of electrical equipment. Present in 19 countries, the Group offers electrical products and solutions to professionals for buildings and for residential, industrial, and tertiary infrastructures, through a multi-brand network of 1,972 outlets. The products and solutions marketed by the group are in response to demands for electrical equipment, lighting, security, climate control, communication, industrial automation, and energy savings. The activity is organized around 3 markets:
- tertiary: malls, sports facilities, hospitals, airports, etc.;
- industry: system integrators, production site builders and equipment producers;
- residential: comfort, security, and home automation.
Net sales are distributed geographically as follows: Europe (50.2%), North America (43%) and Asia/Pacific (6.8%).
REXEL 
