Schneider Electric: share up, with Jefferies optimistic

(CercleFinance.com) - On Tuesday, Schneider Electric shares posted one of the biggest gains on the CAC 40 index, thanks to Jefferies, which highlighted the company's exposure to the data center market.


At around 1:50 pm, the share price was up around 1%, after having gained up to 2.7% in early trading, ahead of both the CAC 40 (+0.4%) and the STOXX 600 index of European industrial stocks (+0.3%).

In a note devoted to the energy sector for data centers and AI, Jefferies says that it has upgraded its Schneider shares to 'buy'.

The broker highlights the electrical equipment manufacturer's strong exposure to the data center market, which accounts for 19% of its sales, representing annual sales of around E7bn (+14% average annual growth since 2018).

The group covers all forms of data centers, from those owned by the Internet giants to colocation data centers, and covers the entire infrastructure lifecycle, it points out.

Jefferies adds that Schneider is also favorably positioned to benefit from increased investment in power grids.

On the stockmarket, Schneider shares have risen almost 25% YTD, giving it a market cap of E129.5bn.


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