Legrand Shares Drop 2.24% to €152.55 After Mixed Analyst Reviews
Shares of the electrical infrastructure specialist fell at the end of the session, in a CAC 40 that lost 1.02%. Two firms updated their views within 24 hours, with raised targets but divergent conclusions. Nevertheless, the stock remains up 48% over the year.
Goldman Sachs and BNP Paribas Exane Revise Their Targets
Goldman Sachs raised its price target on Legrand from €138 to €156 this Tuesday, while maintaining a neutral rating. The day before, BNP Paribas Exane upgraded to 'buy' (outperform) with a target increased from €165 to €175, representing a potential of about 14.7% relative to the current price. These adjustments followed the publication of the first quarter results on May 7, showing a revenue increase of 11.4% to €2.537 billion and a net debt reaching €4.67 billion. The consensus continues to evolve after this event, and the differing opinions between the two firms highlight the questions posed by the acquisition strategy. Based on expected earnings, the stock is trading at approximately 26.4 times current year earnings, compared to an average of 18.2 times for the Industrials sector. Despite today's consolidation, analyst opinions remain largely constructive.
Share Price Retreats After Hitting Record High on May 7
Today's decline follows the record high reached on May 7 at €166.95. The price is now at €152.55, down 2.24%, with a focus on cyclical stocks in the CAC 40 (Schneider Electric down 3.20%, STMicroelectronics 4.12%). The stock remains above its 20-day moving average (€151.45) and is at mid-range of the Bollinger Bands (57%). The RSI at 60 indicates a moderating momentum without signs of tension. The resistance level identified at €160.10 was breached and then given up in recent sessions, and the support at €128.85 remains distant. The construction climate in France was reported at -18 in April according to Eurostat surveys, a context that weighs on the expectations of the building equipment sector. Key upcoming dates include the general assembly on May 27, followed by the dividend detachment on May 29, and the first half results on July 29.
