Legrand stock among strongest gainers on CAC 40 following Jefferies rating
Legrand is regaining momentum on Friday, ranking among the most dynamic stocks in a modestly rising CAC 40 session. The electrical equipment manufacturer for buildings stock is advancing following the price target upgrade published Thursday by Jefferies, in a context of broadly positive market sentiment.
A rebound of more than 2% that brings the stock back into contact with its short-term moving averages
Legrand gains 2.04% during the session at €137.35, advancing from a closing basis of €134.60 the previous day. The movement places the stock among the strongest gainers on the CAC 40, in an index up 0.32%. In terms of moving averages, the configuration is tight: the price is trading practically at the level of the 20-day MA at €137.98 (spread of -0.46%) and the 50-day MA at €136.88 (spread of +0.34%), two thresholds that closely bracket current trading levels.
The 200-day MA at €139.92 remains above the price, at a spread of 1.84%, and materializes the main technical obstacle in the short term. The RSI at 45 remains in neutral territory, with no signs of exhaustion or overbought conditions, which leaves room for movement in both directions. Over the week, the gain remains modest at +0.77%, following a gain of 3.12% over the month, while the quarterly decline stands at -5.76%.
Jefferies raises its target to €168, BofA Securities maintains negative stance with target at €139
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Jefferies raised its price target on Legrand yesterday from €167 to €168, while maintaining its buy rating. At the current price of €137.35, this represents an upside potential of approximately 22%. The American bank is thus in line with positive views on the stock, in a context where Oddo BHF had also revised its price target last week.
BofA Securities, for its part, marginally adjusted its target from €138 to €139 on September 23, while maintaining its sell rating: the target leaves only a spread of approximately 1.2% compared to the current price, highlighting a notably more cautious view on the stock. These two positions reflect a division of opinion among brokers on Legrand, in an environment where the company raised its 2026 annual targets when publishing its first-half results on July 29, with record growth of +17% excluding currency effects driven notably by data centers. The next investor meeting is scheduled for September 29, during the Investor Day in Singapore.
SectorMachines et équipements industriels›Équipements électroniques
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Context
Period
Period: 9M 2026
Key reported figures
Revenue: 8 329 millions d'euros
Quarterly revenue: 8 329 millions d'euros
Revenue growth: 19,5 %
EBITDA: 1 950 millions d'euros
EBITDA margin: 23,4 %
Net income: 1 067 millions d'euros
Free cash flow: 1 010 millions d'euros
5 373 millions d'euros
Guidance from the release
« Forts de notre performance depuis le début de l'année, nous relevons nos objectifs pour 2026 »
Risks mentioned
Intégration de multiples acquisitions représentant un défi opérationnel majeur avec calendrier d'intégration étalé.
Impact des mouvements de change négatif (-6,6 M€ de pertes de change au compte de résultat et -588,5 M€ en réserves de conversion).
Augmentation du besoin en fonds de roulement : stocks +315,6 M€, créances clients +458,9 M€ en 9M.
Opportunities identified
Poursuite de la stratégie d'acquisitions ciblées créatrice de valeur avec 7 acquisitions complétées en 9M 2026 (Green4T, Kratos Industries, TES, Keydak, SRS Power Engineering, Girtz Industries, Axel Health).
Croissance du chiffre d'affaires de 19,5% YoY portée par le déploiement des acquisitions et l'intégration en cours.
Amélioration du cash-flow libre à 1 009,5 M€ (12,1% du CA) malgré les investissements d'acquisition.
Outlook / guidance
Expected revenue: 11 472 millions d'euros
Management commentary: « une croissance de ses ventes (hors effets de change) comprise entre +20% et +22% »
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.