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(Sharecast News) - Shares of Legrand surged on Tuesday after the French specialist in electrical and digital building infrastructure lifted its 2030 targets, driven by AI data centre demand.
Between 2027 and 2030, it now expects organic sales growth with a compound annual growth rate of 6% to 8%, up from a previous range of 3% to 5% growth. It also expects an adjusted operating margin of 21% to 22% of sales on average, after acquisitions and including restructuring expenses, versus around 20% previously.
Sales growth excluding FX and divestments is now seen at 11% to 13%, up from 6% to 10%.
Legrand also said it's now targeting an average annual contribution from mergers and acquisitions of around 5%, having targeted 3% to 5% at the capital markets day in 2024.
Legrand said that AI is not just increasing data centre demand, it is "fundamentally changing" the infrastructure architecture. "Legrand is positioned at the critical systems layer, where customers need engineering solutions, service and global scale," it said.
At 1340 BST, the shares were up 7.7% at 145.20.
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