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Investing.com - Jefferies initiated coverage on Rexel SA (EPA:RXL) (OTC:RXLSF) with a Hold rating and set a price target of EUR28.00.
The research firm noted signs of a trough in European residential markets and highlighted U.S. strength driven by secular trends and pricing support, which should provide a strong backdrop for growth and margins into 2026.
Jefferies cautioned that a strong recovery is already reflected in consensus estimates, with adjusted EBITA mid-single digits below consensus and risks related to France and Germany.
The firm believes the market will need more evidence of margin sustainability to reduce Rexel’s deeper valuation discount compared to Wesco International and European capital goods companies.
The EUR28 price target represents approximately 4% total shareholder return and is based on a long-term average price-to-earnings ratio of 11x.
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