Schneider Electric Shares Rise Following Deutsche Bank Upgrade to Buy Rating

Schneider Electric shares rose 2.2% in Paris after Deutsche Bank upgraded them from "hold" to "buy." The broker noted strong growth forecasts from CEO Olivier Blum and good visibility for the data center sector. The target price was raised from €220 to €240. Schneider Electric will present a new strategic plan on December 11, focusing on productivity and efficiency.

Schneider Electric's shares surged 2.2% in Paris on Tuesday following a positive upgrade from Deutsche Bank, which changed its recommendation from "hold" to "buy." The broker attributed the upgrade to strong growth forecasts from CEO Olivier Blum and positive outlook for the data center sector. Deutsche Bank also noted that Schneider Electric will present a new strategic plan on December 11, focusing on productivity and efficiency.

The broker's upgrade comes after Schneider Electric reported a weak Q1 FY25 performance, which led to a 4.99% drop in its shares to ₹934.70. However, the company's strong growth prospects and the data center sector's performance have reassured investors, leading to the upgrade.

The new strategic plan is expected to address investors' concerns about margin trends and place greater emphasis on productivity and efficiency. The broker raised its target price from €220 to €240, reflecting its bullish view on the company's future prospects.

Schneider Electric's recent initiatives, such as partnering with Nvidia to develop sustainable AI data centers and launching new data center solutions, have positioned the company as a leader in the digital transformation of energy management and automation. The company's focus on sustainability and innovation has also contributed to its strong growth trajectory.

References:
[1] https://stockanalysis.com/quote/epa/SU/
[2] https://www.marketscreener.com/news/schneider-electric-stock-rises-on-deutsche-bank-upgrade-ce7c50d3da81f722