2024-07-12 11:58:49 ET
Summary
- Rexel S.A. has been outperforming most of its end-markets, but faces notable challenges in non-residential construction and industrial automation markets.
- Management is looking to the next stage of the company's evolution, including expansion into medium-voltage products and components more leveraged to the data center, grid, and automation markets.
- Despite near-term concerns, Rexel has ample opportunities in existing target electrification markets (EV charging, solar, automation, heat pumps) and is positioned to leverage long-term growth in electrification and automation.
- A real risk of near-term downgrades to guidance and expectations limits my bullishness, but I think there is still attractive long-term potential in these shares.
If you rely heavily on non-residential construction and/or industrial automation end-markets, these are not easy days. When I last wrote about Rexel S.A. ( RXEEY ) ( RXLSF ) (RXL.PA) I noted real risks to those end-markets and considered the stock more of a “strong hold” on its longer-term leverage to electrification, automation, and share growth in the United States....
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For further details see:
Rexel S.A.: Executing Well Through Challenging End-Market Trends