Berenberg cuts Schneider Electric to 'hold' after CEO change
** Berenberg downgrades Schneider Electric SCHN.PA to "hold" from "buy" citing an "unwelcome surprise" after the CEO change at French electric equipment maker on Monday
** "In our view, (former CEO) Peter Herweck was adhering to his mandate of 'evolution not revolution', and executing well on the punchy guidance given at the capital markets day last November" - Berenberg
** Broker points as well to the 60% share price appreciation and outperformance versus peers over the past 12 months
** Although it views Schneider's end-market exposure as highly attractive and sees more upside than downside risk to consensus estimates, Berenberg says it is uncomfortable with the capital allocation risk the CEO change poses
** The broker says the new CEO Olivier Blum, who has been with Schneider for over 30 years, is well placed to lead the company adding that M&A will likely feature more heavily under Blum's tenure
** Among 26 analysts covering Schneider, 15 rate it "strong buy"/"buy", eight "hold" and three "sell"
Reporting by Mathias de Rozario
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