Legrand SA

LR: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€96.00	Ycdqsk	Lkzzhxxw

Raising Our Fair Value Estimate for Legrand to EUR 87 After Taking a Fresh Look

Matthew Donen

Jun 2, 2023

We increase Legrand’s fair value estimate to EUR 87 from EUR 84 after taking a fresh look at the business. Raising our anticipated average five-year adjusted EBIT margin to 20.5% from 20.1% is the biggest driver behind our higher fair value. We expect Legrand to maintain its 2022 EBIT margin of 20% despite a weak near-term outlook for its residential market (40% of sales), through strong pricing power and lower raw material costs. We maintain Legrand’s narrow moat rating and view shares as fairly valued.

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