Oddo maintains its 'neutral' rating on Legrand shares, with a price target raised from 84 to 86 euros, after Legrand yesterday morning published Q4 2022 results 'quite significantly above expectations'.
The research firm reports that the CEO did not wish to comment on market prospects, but believes that datacenters (which were very dynamic in 2022) and green products will continue to grow.
We now forecast organic sales growth of 0.6% (including -1.3% in volumes) and an adjusted EBIT margin of 19.7% for 2023. This compares with organic growth targets of -1/+3% and a margin of around 20% before the impact of acquisitions and Russia", says Oddo.
Finally, the analyst reports that most groups in the sector (Assa Abloy, Rexel, Schneider Electric, etc.) should be able to generate much more sustained growth, thanks to their positioning in more buoyant segments (electrification, automation, etc.).
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Legrand is the global specialist in electrical and digital building infrastructure. Its comprehensive range, suitable for the commercial, industrial, and residential segments of the low voltage market, makes Legrand a benchmark for customers worldwide. Close to its markets and focused on its customers, Legrand has commercial and industrial operations in over 90 countries. The group benefits from solid, long-term growth levers.
Geographically, 41.4% of net sales are generated Europe region, 38.6% in North and Central America and 20% in the rest of the world.
In terms of product offering, 36% of its sales come from products with enhanced value in use (datacenters, connected products in the Eliot program, and energy efficiency programs).
In addition, the group benefits from very solid social and technological megatrends which will support its long-term development.
LEGRAND 
