On Monday, RBC downgraded its recommendation on Schneider Electric to 'underperform' from 'in-line performance', with a price target raised to 165 euros from 160 euros.

In a research note, the Canadian bank's analysts express concern about the energy management and industrial automation specialist's ability to achieve its ambitious targets.

RBC points out that while the Group has set itself the target of achieving average annual organic growth of 7% to 10% for the period 2023-2027, this has so far been around 3.2% since 2007.

If the Group were to achieve its forecasts," continues RBC, "it would be on the back of the dynamism of its sector, a prospect already well integrated into share prices, according to the company, since Schneider shares are trading at a premium, whereas Siemens shares are trading at a 25% discount.

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