Bank of America Maintains Buy Rating on Legrand with €145 Target, Citing Data Center Demand and Construction Growth
Bank of America has reaffirmed its Buy rating on Legrand, setting a price target of €145, due to the company's strong exposure to the growing data center market, which constitutes about 25% of its sales. The bank anticipates double-digit growth in this sector through 2030, alongside a projected 25% increase in European construction activity by 2026, potentially adding 1%-2% to Legrand's growth.
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Bank of America has reiterated a Buy rating on French electrical-equipment maker Legrand, maintaining a €145 price target. The bank highlights Legrand's exposure to data centers, accounting for approximately 25% of sales, with expectations for this market to grow at a double-digit rate through 2030.
This growth is anticipated to support low- to mid-single-digit organic growth for Legrand, even if other sectors slow down. Additionally, Bank of America forecasts a 25% rebound in European construction activity by 2026, which could contribute an extra 1%-2% to Legrand's growth.
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