Analyst Upgrade and Share Reaction
J.P. Morgan upgraded French cable maker Nexans to overweight from neutral and increased its December 2027 price target to €183 from €160. The upgrade lifted Nexans’ share price by 3.84%, marking a notable market reaction.
Completion of "Simplify to Amplify" Strategy
The broker highlighted that Nexans has finished its multi‑year “Simplify to Amplify” portfolio simplification, divesting roughly one‑third of its 2021 revenue base. The final disposal of the Autoelectric business was completed in early July, removing a key earnings drag and positioning the company as a pure‑play electrification entity.
Earnings Growth Outlook
J.P. Morgan forecasts a 15% compound annual growth rate (CAGR) in adjusted EBITDA through 2028. It raised Nexans’ adjusted EBITDA estimates by 3% for 2026, 4% for 2027, and 6% for 2028. These revised forecasts sit 4%, 3%, and 6% above the Bloomberg consensus for the respective years. The broker projects 2028 adjusted EBITDA of €1.10 billion, surpassing the consensus estimate of €1.04 billion, and asserts that Nexans can achieve its medium‑term target range of €1.08 billion‑€1.23 billion organically with the current portfolio. The company is trading at less than 9 times the estimated 2026 EV/EBITDA multiple.
Leverage to European Transmission & Grid Expansion
More than 45% of Nexans’ 2026 adjusted EBITDA is expected to derive from European electricity transmission and distribution markets. The broker anticipates that a planned 40% increase in European power‑grid capacity between 2025 and 2028 will underpin faster revenue growth and improve transmission margins.
North American Acquisitions and Growth Opportunities
Recent acquisitions—including Republic Wire, Electro Cables, and Cables RCT—strengthen Nexans’ presence in North America, expanding exposure to data‑centre, infrastructure, and energy markets. J.P. Morgan noted that additional bolt‑on acquisitions could provide further upside beyond the organic growth trajectory.
Valuation and Market Position
The analyst described Nexans as offering one of the strongest earnings‑growth profiles in the European electrification sector, with its current valuation reflecting a sub‑9 times EV/EBITDA multiple for 2026, indicating attractive upside potential.