Legrand Stock Rebounds Nearly 2%, RSI Drops to 29 in Oversold Territory

Technical Rebound on the Backdrop of Pronounced Oversold RSI

Legrand's stock is up 1.95% at €136.15 at mid-session, while the CAC 40 is up 1.04%. The stock ranks in the upper half of the Parisian index but is not among the most significant gains, dominated by Stellantis and Saint-Gobain. The rebound follows a challenging period: the stock has lost nearly 12% over the past month and 5.5% over the week, following the retreat from its historic peak in early May. An RSI at 29 indicates seller exhaustion in recent sessions, characterized by an oversold zone. The price remains below its three moving averages, with a gap of 6.75% below the MM20 (€146.01) and 8.21% below the MM50 (€148.32). The MM200, at €139.38, hovers just over 2% above the price and represents the first technical threshold to reclaim for a clearer turnaround. The support at €133.55, corresponding to the last closing, held during the session.

A Sustained External Growth Strategy in Datacenters

In parallel, the group maintains a sustained pace of acquisitions. On June 10, Legrand announced the acquisition of American Girtz Industries, a specialist in modular power solutions for datacenters, marking the sixth external growth operation since the beginning of the year. This acquisition follows the purchase of SRS Power Engineering in Malaysia announced in May, which also targeted the data center segment and power protection products. The sectoral context remains mixed for building equipment players: the construction climate in France was at -17.2 in May according to Eurostat, building production fell by 2.8% over the year, and order books remain at -32. This backdrop weighs on the European residential segment, partially offset by the dynamics of datacenters that the group targets through its acquisitions. Over the year, the stock has maintained a growth of nearly 24%. Crossing the MM200 at €139.38 will be the next technical milestone to watch.