Industrials

Report by 2Xideas

The company has evolved from a traditional electrical component provider into a key enabler of structural megatrends such as electrification, digitisation and energy efficiency, while its diversified portfolio and focus on high-growth segments provide a buffer against economic downturns. Industry-leading margins, coupled with operational efficiencies from the “Legrand Way”, indicate significant economies of scale. Fragmentation in the LV industry supports continued consolidation with LR actively participating through its acquisition strategy. Over the next 5-7 years, 2Xideas expects the group to grow EPS by ~9% p.a. outpacing revenue CAGR of 7%, driven by margin expansion.

Report by Messels

Bullish charts featured in Messels' weekly 'European Technical Highlights' report include: Ferrari - finds 7-year price and relative uptrend support; NEL - finds 4-year price and relative uptrend support; ABN AMRO - finds 2-year uptrend support and is bottom of the relative range, although they still prefer Banco de Sabadell and CaixaBank. Bearish charts include: Akzo Nobel - breaks support and loses relative momentum; Legrand - breaks support from prior highs and loses relative momentum; Schneider Electric - breaks the uptrend and develops price and relative top formations.