Legrand stock rises 2.5%, leading a declining CAC 40
Against the trend of a slightly declining CAC 40, Legrand advances significantly during the session, driven by a rating and price target upgrade from Deutsche Bank. The stock of the electrical and digital infrastructure manufacturer from Limoges ranks among the strongest gainers in the index, in a market context weighed down by geopolitical tensions in the Gulf.
Deutsche Bank upgrades to buy rating and raises target to €160, offering 16% upside potential
On Thursday, Deutsche Bank revised its rating on Legrand upwards, moving from "hold" to "buy", while raising its price target from €150 to €160. Against the current price of €138, this target implies an upside potential of approximately 16%. This upgrade comes less than a week after Morgan Stanley had, on Friday, August 28th, also raised its price target on the stock, contributing to a favorable dynamic on the share.
These positive analyst positions echo fundamentals that Q1 2026 results, published on May 7th, highlighted: revenue growth of 11.4%, with the acquisition of Green4T identified among growth drivers. In a context of difficult construction outlook (sector climate in France at -18.2 in August 2026, housing permits declining 8% year-over-year), the group's ability to diversify its revenue streams remains a monitoring point for investors.
A stock at its moving averages, in a CAC 40 penalized by geopolitical risk
Legrand is trading at €138, at the immediate contact of its first two moving averages: the 20-day MA at €137.63 and the 50-day MA at €138.28. The stock is, however, below its 200-day MA at €139.22, less than 1% away from this level. The RSI at 44 remains neutral, with no overbought or oversold signals.
This technical configuration, combined with today's rebound, places the stock at a decision point: a sustained break above the 200-day MA would open space towards resistance at €142.70. The session is unfolding in a globally pressured environment, with the CAC 40 declining 0.36% during the session, weighed down by rising bond yields and military tensions between Iran and its Gulf neighbors, which keep Brent above $95 per barrel. The VIX is falling to 15.37, down from the previous day (16.34), signaling a slight easing of risk aversion in equity markets despite the context.
