On Friday, Schneider Electric (EPA:SCHN) SE (SU:FP) (OTC: SBGSY) saw its price target increased to €275.00 from €265.00 by Jefferies, while the firm maintained a Buy rating on the stock.
The adjustment comes after a meeting with Schneider Electric's CFO, Hilary Maxson, and US investors, which provided a positive outlook on the company's growth potential.
The financial officer shared insights suggesting that organic growth for the company is expected to accelerate into the fiscal year 2025, driven by the strength of its Energy Management sector and a rebound in the Discrete segment.
Maxson indicated that inventory issues within the Discrete segment are no longer a concern and highlighted the growth potential in data center operations, spurred by new opportunities such as the development of large language models.
Jefferies has expressed confidence in Schneider Electric's ability to outperform market expectations, particularly in Energy Management margins. Following the analysis, the firm has increased its earnings per share (EPS) forecast for Schneider Electric by 1-2%, positioning it 7% above the consensus for the fiscal year 2025.
The updated price target reflects Jefferies' reassessment of the company's earnings potential and market position. Schneider Electric, known for its solutions in energy management and automation, appears to be well-positioned to capitalize on emerging opportunities in the energy sector and data center growth.
In other recent news, Schneider Electric SE has been the focus of multiple financial firms following its first-half results. Barclays (LON:BARC) initiated coverage on Schneider Electric shares with an Overweight rating, highlighting the company's potential for significant growth and profitability. This rating is based on the expectation that Schneider Electric should trade at a comparable premium to the sector on a 2025 estimated EV/EBITA multiple.
Deutsche Bank (ETR:DBKGn) increased its price target on Schneider Electric's shares to €215, maintaining a Hold rating. The company's first-half results revealed a 5% adjusted EBITA beat over consensus. Deutsche Bank revised its margin assumption for Schneider Electric to 18.5%, leading to a 1% increase in the firm's earnings per share estimates for the years 2024 to 2026.
In addition, Jefferies upgraded Schneider Electric's stock from Hold to Buy and increased the price target to EUR 260. Jefferies anticipates Schneider Electric's adjusted earnings per share for fiscal year 2025 to be 6% above consensus due to strong volume and pricing in Schneider's Energy Management business.
UBS also maintains a Buy rating for Schneider Electric, viewing it as one of the most promising growth-driven stories in the sector. These recent developments highlight the positive outlook of Schneider Electric's strategic positioning and its potential to enhance shareholder value through consistent performance.
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