Legrand's Stock Jumps 2.5% Marking One of the Top Gains in the CAC 40
The electrical infrastructure specialist shows a strong recovery mid-morning in a positively oriented Paris market. The stock benefits from the overall rebound of the CAC 40 and an upgrade in analyst ratings from the previous day, following a significant pullback since its peak in the spring.
Technical Rebound Supported by CIC Market Solutions' Rating Upgrade
Legrand's stock rises 2.36% to €138.75, among the strongest gains in the CAC 40 this Tuesday mid-morning, as the index itself advances by 0.81%. The stock benefits from a boost given the previous day by CIC Market Solutions, which upgraded its rating on the stock from 'hold' to 'buy', while raising its price target from €167 to €170. At this target level, the implied upside potential is around 22.5% relative to the current price.
The movement comes after several sessions of decline that had distanced Legrand from its historic peak on May 7, aided by an RSI that dropped to 29 on Monday, indicating a distinctly oversold zone. Concurrently, a relaxation in Brent crude prices amid a preliminary agreement between Washington and Tehran fosters a more supportive climate for European cyclical stocks. However, this improvement only partially recovers the lost ground: over a month, the stock is still down 8.78%, while the performance over one year remains solid at more than 26%.
The Stock Reaches its 200-Day Moving Average, Pressured by Shorter Averages
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In terms of technical benchmarks, today's rebound brings the price right to the contact point of the 200-day moving average, located at €139.41 (a gap of -0.47%). This level constitutes the immediate test of the session, after several days spent below it. The configuration remains fragile beyond this: the 20-day moving average at €145.34 and the 50-day moving average at €148.26 are still significantly above the price, with respective gaps of 4.5% and 6.4%, indicating that the short-term trend remains bearish. The RSI mechanically rises from the oversold zone reached on Monday, without yet shifting into neutral territory.
The support identified at €133.55, defended at the beginning of the week, now frames the lower zone of the consolidation range. On the corporate news front, the group has multiplied its external growth operations in recent weeks, notably with the acquisition of American company Girtz Industries announced on June 10, the sixth acquisition of the year, targeted at datacenters. The sector context remains mixed: the construction climate in France is at -17.2 in May and building production is down 2.8% year-over-year, an environment to monitor for the group's low voltage equipment activity.
SectorMachines et équipements industriels›Équipements électroniques
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Context
Period
Period: S1 2026
Key reported figures
Revenue: 5 400 millions d'euros
Quarterly revenue: 5 400 millions d'euros
Revenue growth: 13,1 %
EBITDA: 1 263 millions d'euros
EBITDA margin: 23,4 %
Net income: 698,2 millions d'euros
5 755 millions d'euros
Guidance from the release
Legrand enregistre un semestre solide avec à nouveau une croissance record de ses ventes de +17% hors change et toujours une excellente rentabilité ; Objectifs annuels 2026 relevés
Risks mentioned
Situation géopolitique et économique qualifiée de « très évolutive » par la direction
Effets de change négatifs, la croissance publiée étant inférieure à la croissance hors change
Dépendance croissante à la dynamique du marché des centres de données
Opportunities identified
Croissance record de +17 % hors change tirée par les centres de données
Sept acquisitions créatrices de valeur dans la transition énergétique et numérique
Nombreux lancements de produits nouveaux dans le cadre du plan stratégique
Outlook / guidance
Expected revenue: 11 140 millions d'euros
Management commentary: sales growth (excluding currency effects) of between +16% and +19% (vs. +10% and +15% previously), comprising organic growth of between +8% and +10% (vs. +4% and +7% previously), and growth through acquisitions of around +8% (vs. between +6% and +8% previously); ■ adjusted operating margin (after acquisitions) of between 20.5% and 21.0% of sales (unchanged)
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.