Schneider Electric: End-Market Exposure Underpins Best-In-Class Outlook; FVE Maintained

Schneider Electric's extensive portfolios of electrical and software solutions are enablers of several multi-decade secular growth themes; including artificial intelligence, the energy transition and the electrification of buildings and industry. Several acquisitions have expanded Schneider’s digital capabilities, leveraging its leading market share in electrical products to further integrate itself with end users’ operations and create more meaningful relationships with customers. It also also emerged as a leading supplier of cooling and electrical equipment used by data centers. The shift away from purely transactional sales toward stickier digital revenue and its continuous focus on productivity improvements has lowered the cyclicality of operating performance.