Bernstein names top EU capital goods stocks for data center growth

Bernstein has identified its top picks in the European capital goods sector, highlighting companies positioned to benefit from increasing investment in data center infrastructure and electrical equipment demand.

The brokerage's analysis focuses on industrial and energy technology firms that offer exposure to the build-out of power systems and automation solutions required for expanding data center operations. 

1. Siemens AG (ETR:SIEGn): Bernstein rates the German industrial technology group Outperform, with a price target of 330 euros.

The brokerage sees the company as a preferred way to gain exposure to investment in data center infrastructure and the associated demand for electrical equipment and automation.

2. Siemens Energy AG(ETR:ENR1n): Bernstein rates the German energy technology company Outperform, with a price target of 210 euros.

Its positioning in power infrastructure offers exposure to rising electricity demand linked to data center expansion.

3. Schneider Electric SE (EPA:SCHN): Bernstein rates the French electrical equipment maker Outperform, with a price target of 340 euros.

The company is among the brokerage's preferred European stocks for exposure to the build-out of AI and data center infrastructure, which is driving investment in electrical systems.