Schneider Electric: When A Great Business Becomes A Tougher Buy Call
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Stephen Simpson20.55K FollowersFollow5ShareSavePlay(8min)Comment(1)SummarySchneider Electric remains a premier play on electrification, automation, and industrial digitalization, but current valuation reflects those growth prospects.Management targets 7–10% annualized organic growth through 2030 and a 250 bp EBITA margin improvement, supporting double-digit annualized EPS growth.Schneider remains a leader in electrification products for data centers, buildings, and utility grids and is looking to increase its share of plant through integrated automation, electrification, and software offerings.Strong secular positioning validates a robust valuation, but I prefer to wait for a pullback before adding exposure. Natali_Mis/iStock via Getty Images It’s been a while since I’ve written on one of my favorite plays on electrification, automation, and industrial digitalization – Schneider Electric S.E. (SBGSF) (SBGSY) (SCHN:CA). Since my last article, the ADRs have risenThis article was written byStephen Simpson20.55K FollowersFollowStephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).Analyst’s Disclosure:I/we have a beneficial long position in the shares of ABBNY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.