Rexel shares fall as weak Q3 sales, margin cut By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 16 2024
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Source: Investing.com
Rexel's Trading Update: Rexel's shares fell 3.3% following a trading update that revealed a 2.1% decline in third-quarter sales and a downgrade of its 2024 EBITA margin forecast from 6.3%-6.6% to 5.9%, primarily due to weakening demand in key regions and pricing pressures.
Market Implications and Cash Flow Guidance: The margin cut signals potential challenges for suppliers in the low-voltage equipment sector, while Rexel improved its free cash flow guidance to over 65% amid cost-saving measures, although caution remains among investors due to overall market conditions.
Analyst Views on RXL
Wall Street analysts forecast RXL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RXL is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 53.961
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Current: 53.961
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
