Schneider Electric gained more than 4% in Paris, as Bernstein raised its advice on the stock on Wednesday from 'underperform' to 'outperform', while raising its price target from 110 to 149 euros.

The intermediary explains that it has changed its opinion on several European industrial and capital goods stocks, believing that it is now time to turn positive on the sector once again.

After a difficult 2022 (war in Ukraine, rising energy prices, inflation, rising interest rates, threats of recession...), Bernstein believes that the worst is largely over for industrial groups on the Old Continent.

He also points out that the sector is usually sheltered from economic downturns, as customer demand for efficiency-enhancing processes tends to increase in times of crisis.

The analyst considers that all these factors should favor a recovery in the sector, and raises his recommendation on five stocks, namely Assa Abloy, Dassault Systèmes, Legrand, Schneider and Siemens.

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