Barclays has upgraded Schneider Electric to Overweight with a price target of €305, up from €270, and lifted ABB to Equal Weight at CHF67, from CHF51. The bank simultaneously trimmed targets for Legrand to €144 from €175 and Rexel to €29 from €33.

These changes, detailed in a note reported by Investing.com, position Schneider and ABB to benefit from sustained capital spending in energy infrastructure, power grids, and AI data centers, even as construction faces headwinds from geopolitical tensions and rising yields.

Schneider Electric draws roughly half its earnings from data centers, grid infrastructure, and energy markets. Barclays highlights the company's top revenue share in global data center power alongside Vertiv, offering strong leverage to AI capex. Analysts see no slowdown in AI investments, projecting hyperscaler spending could reach $1 trillion globally by 2028—far exceeding current consensus by over $300 billion.

ABB gains from its exposure to late-cycle energy sectors like LNG, where diversification from Middle East supplies may spark a new investment wave. Barclays praises ABB's execution amid macro uncertainty and competition in medium-voltage equipment.

The analysts draw parallels to the post-Ukraine invasion period, when energy and power capex accelerated despite initial inflation pressures, paving the way for pricing gains into 2027.

Legrand and Rexel, with over two-thirds of sales tied to construction, face greater vulnerability. Barclays anticipates a flat construction market at best over the next 18 months, pressured by higher bond yields, inflation, and Mideast conflict echoes of 2022-23 supply disruptions.

Siemens remains Underweight, with exposure to softening European, Chinese, and Middle East rail markets.

Schneider trades at €227.55, implying 34% upside to Barclays' target and 16% to the consensus of €265 (Buy rating). ABB at CHF62.18 suggests 8% to Barclays' CHF67 but 35% to the €84 consensus (Outperform).

Rexel at €32.75 trades above Barclays' €29 (-11%) but below consensus €39 (+19%). Legrand at €128.85 exceeds its €115 consensus target (Underperform), with Barclays' €144 still implying 12% upside despite the cut.

Barclays expects pricing in industrials to surprise positively in 2027, lagging inflation by about six months.