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    Is Rexel (ENXTPA:RXL) A Bargain Following Raised 2026 Guidance And The GCG Deal?

    Simply Wall St·10/24/2026 05:39:48
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    Rexel (ENXTPA:RXL) raised its full year 2026 guidance after reporting its strongest quarterly sales performance since 2022, supported by North American data centers and an agreement to acquire US based distributor GCG.

    Rexel’s guidance upgrade comes after a choppy stretch for the shares, with the 30 day share price return down 12.57% and the 90 day move lower by 13.29%, even as the 1 year total shareholder return of 14.20% and 5 year total shareholder return of 136.84% point to longer term momentum that remains intact.

    Scan for other power-grid and electrification plays showing similar momentum by reviewing the curated 42 power grid technology and infrastructure stocks along with Rexel’s latest guidance upgrade.

    Bulls see raised guidance, data center demand and the GCG deal as support for a higher multiple. Bears point to recent share price weakness and cyclicality risk. As you run the numbers, which side does Rexel’s current valuation appear to favor?

    Most Popular Narrative: 21% Undervalued

    Rexel’s most followed valuation narrative pegs fair value at €41.21, above the last close of €32.63. This puts the current share price at a clear discount and focuses attention on whether the business can support that gap through execution.

    Rexel's accelerating exposure to fast-growing markets like data centers and broadband infrastructure in North America, supported by both organic growth and targeted M&A, is expected to drive higher volumes and top-line growth, capitalizing on the long-term global shift towards electrification, digitalization, and smart infrastructure.

    The ongoing rollout and adoption of Rexel's digital sales channels (now at 34% of group sales and 43% in Europe) and digital procurement capabilities are enabling improved operational efficiencies and customer retention, which should result in better productivity, enhanced net margins, and structurally higher earnings over time.

    See why 6 investors see Rexel as 21% undervalued.

    Result: Fair Value of €41.21 (UNDERVALUED)

    Still, prolonged weakness in Europe and higher financial leverage after recent acquisitions leave Rexel exposed if demand softens or if financing conditions tighten.

    Find out about the key risks to this Rexel narrative.

    Next Steps

    Mixed signals around Rexel can make the story feel murky, so it is important to move fast, review the full data set and weigh both sides of the argument with the 4 key rewards and 2 important warning signs

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