Analyst Note| Denise Molina, CFA |
We expect the building energy management and grid edge automation markets to grow nearly 5 times the overall equipment sector, as they provide solutions to greenhouse gas emissions. Individual products will increase up to 30% over the next five years. Given our more positive view on demand, we have recently increased our medium-term revenue growth forecasts for listed European electrical suppliers Schneider Electric, Siemens, ABB, and Legrand to 4%-9%, with Legrand at the upper end, including its ongoing acquisition growth target. However, ABB ranks the highest on an earnings growth basis. We retain our wide moat ratings on ABB and Schneider Electric and narrow moat ratings on Legrand and Siemens.