Jefferies upgrades Schneider Electric to 'Buy': Analyst sees huge potential

The renowned analysis firm Jefferies has upgraded Schneider Electric's stock from 'Hold' to 'Buy' and simultaneously increased the target price from 175 to 260 euros. The basis for this revaluation is impressive data regarding the development of data centers. In recent years, these have recorded growth rates of 30 to 40 percent in demand and are expected to stabilize at around 15 percent in the future. In a study published on Tuesday, analyst Simon Toennessen highlighted that this increase in electricity demand necessitates significant investments in the corresponding electrical infrastructure. Schneider Electric should particularly benefit from these investments, as the company is a leader in this sector. Toennessen further emphasizes that the growth and margin prospects for Schneider Electric are more sustainable than previously assumed. According to his assessment, the current consensus estimates for the year 2025 still have considerable upside potential.