Legrand: Deutsche Bank upgrades to buy

(CercleFinance.com) - Deutsche Bank announced on Thursday that it has upgraded Legrand shares from 'hold' to 'buy', with a target price raised from E100 to E115, believing that it was time to be 'constructive' on the dossier.


The broker justifies its decision by pointing to the group's high exposure to the construction market, which it believes should benefit from the current cycle of falling interest rates.

While the premium on which the share's P/E is traded in relation to the rest of the sector has fallen from 20% to 10%, the analyst expects the share to regain its lustre as growth strengthens.

Deutsche Bank adds that it appreciates Legrand's positioning as a 'niche market giant', as well as its ability to capitalize on trends such as electrification, the connected home and energy efficiency.

It adds that with growing concerns about the health of the economy, the Group's defensive qualities (high and stable margins, free cash flow, price control) should once again be valued by the market.


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