Schneider Electric stock plummets nearly 10% following strategic acquisition announcement
The share price of the Rueil-Malmaison-based equipment manufacturer suffers the steepest decline in the Paris index in a downward-trending market. It reacts to an acquisition agreement of unusual magnitude for the group, accompanied by a change in capital distribution policy.
A 22 billion euro acquisition financed by debt and a capital increase
The Schneider Electric share price retreats 9.97% to €272.80, compared to €303 at the previous close, while the CAC 40 declines 1.09%. The group has signed an agreement to acquire PTC for approximately 22 billion euros. The transaction will be entirely paid in cash, through debt and a capital increase. Schneider also plans a pause in its share buybacks in 2027 and 2028.
The share thus breaks through its support level at €272.05 barely touched, at the threshold, after falling 6.25% over one week. It finds itself below its 20 and 50-day moving averages, while remaining above its 200-day MA (difference of 2.21%). The group had raised its 2026 objectives during its half-yearly results released on July 31, based on an order book at record level.
HSBC and CIC Market Solutions raise or maintain targets well above current price
Two brokerage firms published their views on Monday. HSBC raised its price target from €340 to €350, with a buy rating maintained. CIC Market Solutions retained its buy rating and price target of €345.
Both targets are situated approximately 27% and 26% above the current price of €272.80. These levels should be interpreted in light of today's session: the decline of the day brings the share well below the values targeted by these two analysts.
