RXEEY - Rexel: Still An Attractive Way To Get Long On Automation Complexity And Green Retrofits

• Rexel saw business recover in the fourth quarter, and management is looking for healthy mid single-digit growth in '21 on multiple end-market recoveries.
• I continue to believe that electrification is an attractive industrial end-market, driven by increased adoption of automation, controls, and energy/labor-saving technologies, and Rexel benefits as a distributor of those products/components.
• Rexel's ongoing digitialization strategy has already delivered tangible benefits, and I expect this to be a significant driver for several more years.
• Rexel has had a good run, but still looks undervalued on mid single-digit FCF growth and mid-to-high single-digit EBITDA margins.

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