Morgan Stanley Notes Selective Value in French Utilities

By EC Assets · Published 7 October 2026

Morgan Stanley identifies selective value in French utilities following a rise in bond spreads. Recent weakness in French utility shares presents a tactical opportunity in specific names. This weakness stems from a widening OAT spread. The investment bank considers it too early to call a trough for the overall French utility sector. However, the current environment allows for tactical opportunities into year-end. Morgan Stanley continues to monitor the sector for further developments. Morgan Stanley also increased its price target on French electrical equipment maker Legrand to €166 from €160. The firm cited stronger growth and acquisition prospects for this adjustment, which followed Legrand’s capital markets day. Legrand remains a top pick for Morgan Stanley. Separately, Morgan Stanley Investment Management, through its Real Estate Investing unit, announced an acquisition. This involved a portfolio of five French logistics assets. The investment funds managed by Morgan Stanley Real Estate Investing completed this acquisition. Further, Morgan Stanley won a court dispute overturning €1.4 million in deferred bonus payments. This ruling concerned a managing director who had sued for the award after leaving the firm to join a client. The court fight reversed the earlier award. This article is intended for informational purposes only. It does not constitute investment advice.