Jefferies has singled out a set of European capital-goods firms it views as attractive exposure to secular trends in data centers, power grids and industrial automation. The bank's analysis lays out forecasted revenue growth, margin opportunities and the capital-allocation backdrop for several household industrial names.
Below is a company-by-company breakdown of the key expectations Jefferies sets out for 2026 and beyond.
Legrand
Jefferies projects Legrand will target organic revenue growth of 3-6% for 2026, underpinned by a forecasted 15% expansion in its data-center business, which today accounts for roughly 25% of the group. The firm expects price increases of about 2% overall, including a carryover of 1.5% from the previous year. Jefferies points to Legrand's leading position in the white space market and its exposure to data-center upgrade cycles as drivers of upside. The broker also highlights management's view that data-center exposure could rise to 36% of group revenues by 2030. Outside of data centers, Legrand's non-data-center volumes remain in the mid-teens below 2019 levels, which Jefferies sees as an area with recovery potential.
Siemens
Following the planned SHL spin-off, Jefferies describes Siemens as evolving into a more focused industrial group with the potential to develop a differentiated AI-enabled industrial platform. The analyst team suggests the timeline for the transaction could be accelerated - with approval possibly achieved at an extraordinary general meeting later this year rather than waiting for the 2027 annual general meeting. For 2026, Jefferies regards the company's EPS guidance as cautious, given foreign-exchange headwinds and integration costs related to mergers and acquisitions. However, the bank anticipates meaningful operating leverage from 2027 onward, which it believes could enable Siemens to surpass its mid-term target of high-single-digit EPS growth.
Siemens Energy
Jefferies sees substantial midterm upside to consensus for Siemens Energy, citing favourable pricing and elevated utilisation across key markets. The broker notes an absence of indications that the cycle in Gas and Grids is turning, and expects rational competitive behaviour to support attractive economics. With relatively modest capital expenditure requirements, the company should be able to return a large portion of free cash flow to shareholders via dividends and buybacks, in Jefferies' view. Although Siemens Energy may appear expensive in the near term, the bank calculates its growth-adjusted multiple at 0.5x PEG, making it one of the cheapest in the sector on that metric.
Prysmian
Jefferies highlights Prysmian's differentiated exposure to US power-grid investment and data-center cabling demand, noting two-thirds of the group's EBITDA is generated in the US. The broker expects strong execution within Transmission to potentially surprise on the upside for both growth and margins. Record copper prices and tariff dynamics could support price increases and possible market-share gains in 2026, according to Jefferies. On a valuation basis, Prysmian is trading at 17x P/E on 2027 estimates, which the bank considers attractive for a company it expects to deliver mid-teens earnings growth.
NKT
Jefferies says NKT has moved beyond the principal risks tied to its ambitious investment programme and the capacity ramp-up in high-voltage production. The broker forecasts NKT will produce the fastest earnings growth and the highest high-voltage margins in the sector by 2028. While headline multiples on the stock are higher than peers, Jefferies regards NKT as the cheapest on a growth-adjusted PEG basis.
Schindler
Jefferies names Schindler as its preferred elevator play and expects the company to hit its medium-term margin target in the current year. The bank anticipates incremental savings of CHF150-170 million this year, a level of efficiency that could lift margins beyond current expectations. Jefferies also points to ramping SG&A and modularity savings, and suggests these could prompt management to raise medium-term margin guidance at the group's Capital Markets Day in June.
Assa Abloy
Jefferies outlines a recovery case for Assa Abloy, noting that improving consumer confidence in the Nordics - where floating-rate mortgages are common - removes a significant barrier to a housing-led rebound. The broker expects organic revenue growth in EMEIA to accelerate to 4.5-5% with margins potentially returning to at least 16%. In the US, Jefferies sees signs of recovery in residential repair and remodeling demand that extend beyond interest-rate moves, supported by homeowners tapping home equity lines of credit.
Collectively, Jefferies' selections emphasise exposure to three structural demand drivers - data centers, power-grid investment and industrial automation - and identify companies with differentiated positioning, margin-recovery potential or attractive capital-return prospects.