Barclays upgraded Nexans SA to overweight from equal weight, raising its price target 19% to €157 from €132, citing a 6% stock surge as evidence a sharp selloff had over-prioritized risks from a troubled high-voltage transmission contract. The French cable maker’s shares closed at €122.60 on March 2, implying 28.1% upside to the new target. The downgrade followed a steep 17% YTD drop triggered by the rescheduling of the GSI offshore cable project, wiping €1.1 billion off market value.

Barclays highlighted the GSI contract’s €1.2 billion backlog and 25% EBITDA margin, representing €300 million in undiscounted potential. Management confirmed tendering for a replacement MI cable project, with potential award in Q2. The brokerage lifted 2026-2028 EBITDA forecasts 8-15% to €796 million, €938 million, and €1.02 billion, outpacing consensus by 4-11%.

Barclays also flagged PWR Grid’s undervaluation, noting Nexans’ 50% capacity expansion by 2028 across Sweden, France and Morocco. Strong demand pushed cable prices higher, with recycled aluminum accounting for 30% of volume. European construction permits showed early improvement, with French residential permits up 15% YoY.