Legrand's Stock Jumps Nearly 6% Leading the CAC 40
The electrical infrastructure specialist records the highest rise in the CAC 40 in mid-afternoon, in a Parisian market lacking clear direction. The stock mitigates the decline started since its peak in the spring in a single session, with the rebound supported by an upgraded analyst recommendation.
A Significant Rebound that Puts the Stock Above its 20-Day Moving Average
Legrand's stock surged by 5.91% to €146.90, while the CAC 40 only gained 0.18%. The stock leads the index, ahead of Schneider Electric (+2.94%), in a movement that contrasts with the slide begun since the spring peak. Today's increase pushes the price above the 20-day moving average (MM20) of €145.00 (a +1.31% difference) and the 200-day moving average (MM200) of €139.45 (a +5.34% difference), while the 50-day moving average (MM50) at €148.32 remains just under 1% above the current price.
The RSI at 42 moves out of the oversold zone touched last week, without indicating upward tension. Over seven days, the gain is 6.3%, which erases the recent low and brings the three-month performance into positive territory (+6.95%).
CIC Market Solutions Upgrades to 'Buy' with a Target Raised to €170
On June 15, CIC Market Solutions upgraded its rating on Legrand from 'hold' to 'buy', with a price target increased from €167 to €170. Based on the current price, this target represents a potential upside of about 15.7%. This change in opinion follows a series of external growth operations: the acquisition of Girtz Industries announced on June 10, the sixth operation of the year, and the acquisition of SRS Power Engineering in Malaysia revealed on May 20.
Both targets enhance the group's exposure to data centers and critical infrastructures. This move is part of a deteriorating building environment in France (construction climate at -17.2 in May according to Eurostat), but Legrand is now increasingly deriving revenue from data centers, a segment less correlated with the residential cycle. The next identified milestone: the resistance at €160.10, still nearly 9% away.
