I’ve made no secret of my bullishness on automation, digitalization, and electrification as major global secular trends over the next five to 10 years, nor my belief that Schneider Electric (OTCPK:SBGSF) is an excellent play on those trends. Since my last article, though, the shares are down about 20% (20% for the ADRs, closer to 12% for the locals), underperforming a weakening tape for industrials in general and automation/electrification plays in particular.
In that last article, I said that valuation was becoming more of an issue, but that investors could see another 20% rise before a pullback. While the shares didn’t quite make it to 20% (closer to 12%), it does seem as though the Street has moved on from the automation/electrification theme here of late. While that’s understandable, I suppose, as higher expectations have worked into the valuations over the last couple of years, I think this pullback is worth watching, as I don’t think the automation / electrification story is over quite yet.
Read the full article here:
Schneider Electric Skids As Investors Dim Lights On Electrification, Automation
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