Evercore ISI Upgrades Legrand to Outperform on Datacenter Growth

Evercore ISI upgraded Legrand SA to Outperform from In Line, maintaining a EUR175.00 price target following the company's recent datacenter investor day, according to an Investing.com report.

Legrand's datacenter business accounts for over 30% of total sales, with projections indicating this segment will surpass 45% of total revenue by around 2030, according to the Investing.com analyst coverage.

Expanding Content Value per Megawatt

The analyst upgrade reflects structural shifts in electrical infrastructure requirements for modern computing facilities. Legrand's accessible content per megawatt increases from approximately $2.5 million to over $3.0 million for full low-voltage direct current systems operating in an 800-volt environment.

Management also revised its profitability metrics upward, raising its targeted operating margin range to between 21% and 22%, reflecting increased demand for specialized power distribution and thermal management equipment.

What Datacenter Expansion Means for Electrical Suppliers

Electrical and digital building infrastructure providers are positioning themselves around high-density artificial intelligence compute clusters. As operators deploy denser server racks requiring specialized power architectures, component suppliers capturing higher content per megawatt benefit from sustained capital expenditure cycles in enterprise and hyperscale facilities.