Legrand (EPA:LEGD) shares climbed 2.5% on Thursday following remarks by company management at a JPMorgan industrials conference that directly tackled investor questions about the group's positioning in data centers.
The French electrical infrastructure company initially rose by more than 3% before trimming some of those gains after the conference discussion. Market observers noted that the management commentary helped to alleviate a key area of investor skepticism concerning Legrand's medium-term data center strategy.
JPMorgan analyst Phil Buller specifically highlighted that Legrand had addressed the central "bear case" tied to its strategic stance in the data center market over the medium term.
In a JPMorgan note summarizing the event, the bank reported that Legrand said current growth in data centers remains very strong and assured that this expansion will not end in 2026. The same note stated that the company's total addressable market for data centers in the medium term is approximately 2€400 billion.
The comments followed a day in which Legrand's shares had already moved higher; the stock closed 4.5% up on Wednesday.
Context and market reaction
Executives' reassurances at the JPMorgan industrials conference appeared to reduce a prominent line of investor concern about Legrand's medium-term prospects in the data center segment. Analysts summarized the conference takeaways in a JPMorgan note, citing both the management assurances about ongoing growth and the size of the medium-term market opportunity.
While the stock pared some intraday gains after the presentation, the overall directional move over the two sessions reflected an easing of the previously cited bear case among market participants.
What was stated
- Management said data center growth is currently very strong and will not stop in 2026, according to JPMorgan's conference summary note.
- JPMorgan estimated Legrand's medium-term data center total addressable market at about 2€400 billion, per the same note.
- Phil Buller of JPMorgan said the company addressed the key bear case regarding its strategic positioning in data centers over the medium term.
These developments were reflected in Legrand's share price moves across the Wednesday and Thursday trading sessions.