Jefferies Upgrades Rexel to Buy, 27% Upside

Jefferies raised Rexel's rating to "buy" and lifted price target to €43.10, implying ~27% upside from €33.90 close.
Revenue projected to grow to €21.06 bn by 2027, with EBITA rising to €1.41 bn and EPS reaching €3.02.
Data centre business, now ~5% of group sales, is expected to near €1 bn revenue after 50% prior‑year growth, targeting >20% annual growth.
Jefferies expects margin expansion to above 7% mid‑term, driven by pricing, operating leverage, UK/Germany restructuring and 20‑30% productivity gains from digital/AI.