Analyst Remi Grenu of Morgan Stanley maintained a Buy rating on SPIE SA (0R8M – Research Report), with a price target of €43.00.
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Remi Grenu has given his Buy rating due to a combination of factors that highlight SPIE SA’s strategic positioning and growth potential. A significant portion of SPIE’s revenue, approximately 33%, is generated in Germany, which is anticipated to become the company’s largest market by the fiscal year 2025. This growth is attributed to SPIE’s focused capital allocation and mergers and acquisitions efforts in the region, capitalizing on the fragmented nature of the German multitechnical services market.
Moreover, SPIE’s substantial exposure to the electricity transmission and distribution (T&D) sector in Germany, accounting for 40-45% of its revenues, presents a robust growth opportunity. The T&D segment benefits from both public spending and private investments, which de-risk the company’s activity pipeline and offer potential for accelerated growth. Despite recent positive market movements, Grenu believes that the market has not fully recognized the growth and margin improvement potential, particularly in Germany, which underpins his Buy recommendation.