Citi raises Legrand stock price target to EUR140 on datacentre growth

Published 21/07/2025, 08:06
Citi raises Legrand stock price target to EUR140 on datacentre growth

Investing.com - Citi raised its price target on Legrand SA (EPA:LEGD) (EPA:LR) (OTC:LGRDY) to EUR140.00 from EUR120.00 on Monday, while maintaining a Buy rating on the electrical equipment manufacturer.

The price target increase follows Legrand’s Q2 sales beat and the company’s upward revision of its fiscal year 2025 organic sales growth guidance to 5-7% from the previous 2-4% range.

Citi attributes the improved performance primarily to strength in the datacentre segment, noting the catch-up of white space (server room) investment versus grey space (plant and equipment room) investments.

The Q2 results alone would push consensus FY25 organic sales estimates to approximately 6.5% if second-half 2025 expectations remain unchanged, with Citi suggesting market momentum could drive expectations toward the upper end of the new guidance range.

Citi also sees potential for the U.S. office market to provide additional growth support later this year, with the new price target reflecting higher forecasts, increased EV/EBITA multiples aligned with the firm’s ROCE/growth framework, and a valuation year roll-forward to 2026.

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