BUZZ-Schneider Electric tops CAC 40 as margin fears overplayed

Reuters
27 Jun
BUZZ-Schneider Electric tops CAC 40 as margin fears overplayed

** Electrical equipment maker Schneider Electric SCHN.PA rises 5.8%, topping France's CAC40 index .FCHI, after its CFO Hilary Maxson reassured investors during a pre-close call on Thursday

** Redburn Atlantic analyst James Moore notes CFO's remarks that margin concerns are overplayed and the group will meet its full-year targets

** Moore notes the CFO reaffirmed the FY25 target despite a "period of heightened uncertainty" and said the group expects a return to normal seasonality, with most of the organic EBITA coming in the second half

** The broker highlights expected trends, with strong data centres and grids, improving automation sectors in China and India, and regional strength in North America

** Shares are on track for their best day since Nov 2023, when it closed 8.3% higher

** The analyst emphasises Schneider's exposure to accelerating data centre growth, viewing the stock as derisked despite lagging peers like Eaton and Vertiv VRT.N

(Reporting by Anna Peverieri)

((Anna.peverieri@thomsonreuters.com))

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