BofA Keeps Schneider Electric at Buy on 'Very Achievable' Midterm Margin Target

01:07 AM EST, 01/07/2026 (MT Newswires) -- BofA Global Research maintained Schneider Electric's (SU.PA) buy rating and price objective of 290 euros, noting the French industrial technology company's potential to reach its medium-term margin goals. "We think the mid-term margin path outlined at the Dec [capital markets day] (+250bps margin expansion to 2030) is very achievable, given the 1) strong potential at AVEVA, where the end of the SaaS transition should drive EBITA margins expected to c30% in 2030 (17% in 2024); 2) renewed focus on productivity, driven by cost [standardization], new procurement measures and driving down SFC as % of sales and 3) scope for portfolio rotation ((Euro)1-1.5bn of divestment) to improve the margin profile of the group (not in our numbers)," analysts said Tuesday. The research firm also expects the company's price/cost to "remain challenged" in the near term amid tariff headwinds, while it models "progressively higher" financial gains in the mid-term. BofA said they are "roughly in line" with market forecasts on full-year 2025 organic sales growth and adjusted EBITA margins, while projections for 2026 and beyond surpass expectations.