Equity research: Schneider Electric

Schneider Electric helps customers manage electricity from the moment it enters a facility to the equipment that uses it. The company supplies energy-management and industrial-automation solutions to buildings, data centres, infrastructure and industrial sites, with a portfolio that spans electrical-distribution equipment, digital building controls, automation systems, software and services.

Demand for power is rising across transport, industry, buildings and data centres. As a result, customers need to expand their electrical capacity while also improving reliability, keeping costs under control and managing emissions. These two structural themes, electrification and energy efficiency, sit at the centre of Schneider Electric’s business.

Because its offering covers how electricity is distributed, controlled and used, Schneider Electric can support customers at each stage of that investment. Data centres, buildings and industrial facilities all need more capacity and smarter control over energy use, and the company brings together hardware, software and services to meet both needs.

The shares have come under pressure following the proposed acquisition of PTC. The research examines how this recent weakness should be read against the company’s long-term positioning.

We believe Schneider Electric offers high-quality exposure to themes that should stay relevant for years to come, as the world uses more electricity and looks to use it more efficiently.

Valuation, price targets and outlook 

We rate Schneider Electric shares a Buy. The full report sets out the price target, the valuation approach behind it and the key factors shaping the outlook.

To access the equity research reports, log in to live.moneybase.com. Once logged in, navigate to the ‘News’ section and select the ‘Research’ tab to view all available research documents. If you don’t have a Moneybase account, download the app to get started. 

This equity research document is issued by Calamatta Cuschieri Investment Services Ltd “CCIS”. Newly issued research recommendations and target prices supersede previously published research.  

The financial instruments discussed are intended for retail clients however, they may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein. The value of the investment may go down as well as up and may be affected by changes in currency. Where investments are denominated in a currency other than the investor’s base or reporting currency, changes in foreign exchange rates may adversely affect the value and/or returns of the investment. Any performance figures quoted refer to the past and past performance is not a guarantee nor a reliable guide to future performance.   

This information is being provided solely for information purposes and should not be deemed or construed as investment advice, tax, legal, or any other ancillary regulatory advice. CCIS does not accept liability for actions, proceedings, costs, demands, expenses, damages, and losses suffered by persons as a result of information, views, or opinions appearing in this document.   

All investment services are brought to you by Calamatta Cuschieri Investment Services Ltd (CCIS) C13729 which is licensed by the MFSA to undertake investment services business under the Investment Services Act, Cap 370. Calamatta Cuschieri Investment Services Ltd is a member of the Maltese Investor Compensation Scheme. Instruments entrusted with us are covered under the Investor Compensation Scheme Regulations.   

The company is a subsidiary of Calamatta Cuschieri Moneybase plc and is registered at Level 0, Ewropa Business Centre, Dun Karm Street, Birkirkara BKR 9034, Malta.