BofA Keeps Legrand at Buy on Expected Data Center Growth, European Construction Rebound

01:59 AM EST, 01/07/2026 (MT Newswires) -- Legrand's (LR.PA) exposure to the data center market and the anticipated recovery of the European construction sector prompted BofA Global Research to reaffirm its investment opinion on the French electrical and digital building infrastructure group. "We view Legrand's significant exposure to datacenters as a strong structural positive. With this segment to grow at a double-digit rate until 2030E, its 25% weight in group sales could contribute low to mid-single digit pa to group organic growth," analysts wrote Tuesday, adding the forecasted 25% recovery of the construction sector in 2026 could offer a "meaningful tailwind" for the company, increasing growth by another 1% to 2%. As such, the buy rating and price objective of 145 euros were maintained. The research firm forecasts Legrand's 2025 fourth-quarter results to remain consistent with management's guidance from the third-quarter results call. BofA projects a 9.3% annual increase in full-year 2025 sales to 9.45 billion euros, along with an adjusted operating profit of 1.96 billion euros, which remains in line with market expectations.