Bank of America announced on Monday that it had upgraded its recommendation on Nexans shares from 'underperform' to 'buy', with a price target raised from 65 to 100 euros.

In a research note, the analyst justifies his decision by citing the cable manufacturer's strong exposure to the fast-growing power grid infrastructure and offshore wind energy markets, which together generate almost 50% of its current operating income (Ebitda).

It also points to Nexans' excellent positioning in high-voltage cables, which it attributes to the Group's footprint in the United States and the highly profitable projects in its order book.

Finally, BofA points out that the stock has underperformed its benchmark European index, the STOXX Europe 600 Industrial Goods & Services, by 28% since the start of the year.

At current levels, the stock's devaluation relative to the rest of the sector has now reached 40%, compared with 10% last October, it points out, a level which it believes more than reflects the risks associated with the construction and high-voltage networks sectors.

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