Peer Electrification margins suggest Schneider‘s execution story has room to run into 2027

研报英文原文证据摘录

Peer Electrification margins suggest Schneider‘s execution story has room to run into 2027

IdeaMimportant acceleration in Schneider's consensus earnings momentum, which had

been a disappointment in 2025. We increase our forecasts driven by faster 2026

organic growth (12.8% in 2026e) and also increased EBITA margins. Our target price

increases to €320 (from €315). This is driven by increased forecasts, which is

partially offset by applying a lower target multiple in our SOTP (now 18.3x 2027 EV/

EBITA vs 19.9x previously) after the Electrification peer de-rating. Our bull case

(€380) and bear case (€230) also increase on higher forecasts for 2027.

Valuation is still not at demanding levels in our view. Schneider is trading on

16.8x 2027 EV/EBITA, a 18% premium to the sector. Since 2021, Schneider has

largely traded at a 15-50% premium to the broader Cap Goods sector. We also

continue to view Schneider's valuation as relatively undemanding versus ABB

trading on 18.8x 2027 EV/EBITA, and Eaton trading on 20.6x.

Exhibit 1: Schneider EV/EBIT versus a weighted average of Schneider's peers.

Schneider's peer group has seen a greater negative valuation impact from the

recent underperformance of data center exposed stocks. We continue to like

Schneider on the basis of it having strong topline growth, but also an idiosyncratic

margin improvement story.

Schneider EV/EBIT Schneider Weighted Peer-Multiple

26.0

24.0

22.0

20.0

18.0

16.0

14.0

12.0

10.0

8.0

6.0

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Source: Refinitiv