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Spie Shares Rise After Jefferies Upgrades Stock to 'Buy'
Shares of French engineering group Spie SA gained 1.8% to trade at €44.52 on Tuesday after analysts at Jefferies upgraded the stock to 'Buy' from 'Hold', citing an attractive valuation and signs that its organic growth is nearing a bottom.
Jefferies' Rationale
In a note to clients, Jefferies stated that market concerns regarding political risks impacting the company appear to be an "overreaction." The firm highlighted that after a summer pullback in the share price, Spie's valuation has become "highly attractive," offering an 8% free cash flow yield.
Jefferies projects an acceleration in Spie's growth between 2027 and 2028, driven by two key factors:
- A ramp-up in Germany's high-voltage grid business.
- Expansion in data center construction.
The investment bank also expects headwinds in the company's French fiber optics and building solutions divisions to gradually ease, further supporting its improved outlook.
Broad Analyst Support
AdThe upgrade aligns with a broader bullish consensus among analysts. On September 1, Deutsche Bank initiated coverage of Spie with a 'Buy' rating and a €57 price target, citing its improved growth prospects and exposure to structural demand from electrification and decarbonization trends.
Other major financial institutions, including JPMorgan, Morgan Stanley, UBS, and Kepler Capital, also hold 'Overweight' or 'Buy' ratings on the stock, with the average analyst price target sitting well above its current trading level.
Company Fundamentals
Spie's recent performance has been solid, lending support to the positive analyst sentiment. The company's first-half 2026 results, reported on July 30, showed mid-to-high single-digit revenue growth year-over-year while operating profit margins remained stable.
The firm continues to see strong demand for its services in core markets like France, Germany, and the Netherlands, driven by its work in the energy transition, smart infrastructure, and nuclear power maintenance sectors.
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