Legrand reported a mixed set of results, with sales and adjusted operating profit beating expectations, whereas FCF missed consensus. As demonstrated in the past, Legrand’s agility to manage actively its cost structure is a strong asset. Furthermore, we also see further room for restructuring, enabling the company to protect both its profitability and margins. For all these reasons, we remain positive on the stock, though our intrinsic valuation indicates at this stage a limited upside.
31 Jul 2020
Poor cash and outlook, while potential is on restructuring
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Poor cash and outlook, while potential is on restructuring
Legrand SA (LR:WBO) | 0 0 0.6% | Mkt Cap: 16,627m
- Published:
31 Jul 2020 -
Author:
Luis Pereira -
Pages:
3
Legrand reported a mixed set of results, with sales and adjusted operating profit beating expectations, whereas FCF missed consensus. As demonstrated in the past, Legrand’s agility to manage actively its cost structure is a strong asset. Furthermore, we also see further room for restructuring, enabling the company to protect both its profitability and margins. For all these reasons, we remain positive on the stock, though our intrinsic valuation indicates at this stage a limited upside.