Legrand's Upgraded Midterm Targets Are Achievable, but We Still See Risks to the Equity Story

Legrand has established itself as a dominant player in electrical equipment, enjoying a leading market share in two-thirds of its product ranges. Its brand reputation for reliability and extensive product range has fostered close-knit relationships with key participants in sales channels, creating high barriers to entry and resilient profitability. Products are specified by electrical engineers/designers and purchased through installers and contractors for buildings. For data centers, Legrand works directly with the design teams of hyperscalers and major co-locators to ensure product specification and compatibility. Legrand’s push-pull strategy reinforces its close relationships with stakeholders by offering distributors an extensive product range of over 300,000 products and frequent training on its regular product innovations for installers, who are largely price-insensitive and value reputation and ease of installation over price.