Schneider Electric (OTCPK:SBGSY)
has continued to do reasonably well, slightly outperforming the broader
industrial group since its first quarter earnings release and pulling
ahead of the group on a trailing twelve-month basis. With the company’s
Wednesday investor day in the books, the company took the opportunity to
reiterate and further explain its margin improvement targets, as well
as outline some key longer-term growth opportunities like data centers
and smart factories.
I liked Schneider before, and I
still like it now, though valuation is more “okay” than exciting. While
success on its margin improvement efforts could drive another point on
the forward EV/EBITDA ratio, the near-term trading is likely to be more
concerned with the macro environment, as Schneider is vulnerable to a
slowdown in Europe, decreased capex in China, and a slowing U.S. market.
Continue here:
Schneider Electric Reassures On Margins, But Macro Remains A Risk
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