Schneider: Oddo remains a buyer after Indian acquisition
(CercleFinance.com) - Oddo confirms its buy rating on the Schneider stock, with its target price of 87 euros after the group's announcement of an acquisition in India.
Schneider has announced signing an agreement with the conglomerate Larsen & Toubro (L&T) to buy its Electrical & Automation division (L&T E&A) in India.
According to Schneider Electric, the market for low-voltage switchgear in India is expected to see almost double-digit growth, while that of industrial automation is expected to report double-digit growth, Oddo says.
The deal, through its financial package, reminds us of that of Aveva, so it has the merit of limiting the financial contribution and also limits the risk related to transaction multiples (as the contribution from assets is valued at the same basis, analysts say.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Schneider has announced signing an agreement with the conglomerate Larsen & Toubro (L&T) to buy its Electrical & Automation division (L&T E&A) in India.
According to Schneider Electric, the market for low-voltage switchgear in India is expected to see almost double-digit growth, while that of industrial automation is expected to report double-digit growth, Oddo says.
The deal, through its financial package, reminds us of that of Aveva, so it has the merit of limiting the financial contribution and also limits the risk related to transaction multiples (as the contribution from assets is valued at the same basis, analysts say.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.