Legrand soars over 7% at midday, boosting a hesitant CAC 40

A Mixed Session Amid Tight Oil Market

The mood remains cautious on the Paris stock exchange. The dispersion speaks volumes: 17 stocks are up, 23 are down, and none are unchanged. In other words, the slight increase in the index is due more to a few heavyweights than to an overall momentum.

The energy backdrop continues to have an impact. Washington's rejection of Iran's plan to reopen the Strait of Hormuz has reignited tension over oil prices, with Brent crude hovering around $107. This environment of high energy inflation keeps investors on their toes. Across the Atlantic, indices also ended in the red: at the close of trading on Monday, September 28, on Wall Street, the S&P 500 fell by 0.77%, the Dow Jones by 0.67%, and the Nasdaq 100 declined by 1.08%.

Legrand energizes the market, industry offers support

Today's highlight is Legrand, surging 7.27% to 144.65 euros. The group took the opportunity of its investor day held in Singapore, on the sidelines of Data Centre World Asia, to raise its 2030 targets and aim for organic growth of 6 to 8% per year. Data centers are at the heart of its roadmap. Consequently, CIC Market Solutions raised its price target from 170 to 180 euros while reaffirming its buy recommendation.

The momentum benefits the entire electrical and industrial sector. Schneider Electric is up 2.96% to 299.10 euros, while STMicroelectronics gains 2.28%. Bureau Veritas progresses by 2.22%, boosted by JP Morgan's upgrade, moving from « neutral » to « overweight » with an increased target from 28 to 34 euros. Accor rounds out the list of gains with an increase of 0.89%.

Construction and Energy Weigh Down the Index

Conversely, construction stocks are struggling. Eiffage falls by 2.88% to 102.95 euros, followed by Vinci, down by 2.11%. Eurofins Scientific drops 2.41%, impacted by Bernstein, which downgraded its rating from « outperform » to « market perform » and reduced its price target from 77.20 to 73.90 euros.

Despite the strength of the oil barrel, TotalEnergies loses 1.63% at 78.70 euros. The group, however, during a meeting in New York, extended its targets to 2035 and aimed for more than a 5% increase in dividends per year by 2030. Analyst opinions diverge: Oddo BHF raised its target from 85 to 88 euros while maintaining an « outperform » rating, whereas Alphavalue stays at « reduce » with a target lowered to 74.60 euros. Carrefour rounds out the main declines, down 1.61% at 16.23 euros.