The shares of the Munich energy technology group Siemens Energy received fresh tailwind from analysts at the start of the week.
• Jefferies significantly raises the price target for Siemens Energy to 215 euros
• Praise for grid and turbine business
• Analyst: Things are going well across the board at Siemens Energy
In a new analysis, the analysis company Jefferies has significantly increased the price target for Siemens Energy from 164 to 215 euros and at the same time left the rating at “Buy”. The background to the reassessment is stronger than expected business figures in the second quarter and a continued robust operational trend, as analyst Lucas Ferhani writes in his study according to “dpa-AFX”.
Grid business and gas turbines remain growth drivers
The Jefferies expert assesses the development in the network business and in the gas turbine segment as particularly positive. Both areas once again exceeded market expectations in the second quarter, he wrote. There are also many indications that the momentum will remain high in the third quarter.
This is an important signal for Siemens Energy: After years of operational challenges, investors are increasingly focusing on stable cash flows and resilient demand in the core businesses. The network technology business in particular is considered a key growth driver in the wake of the global energy transition and the increasing need for modern electricity infrastructure.
Progress at Siemens Gamesa is providing additional tailwind
Another positive aspect that influenced the analyst’s even more optimistic assessment concerns the wind power subsidiary Siemens Gamesa Renewable Energy (SGRE). According to Ferhani, there are additional signs of improvement there. The unit, which has long been considered a problem case, appears to be gradually returning to calmer waters – a decisive factor for the group’s overall profitability.
The development at SGRE is being closely monitored by investors as it has contributed significantly to the volatility of the group’s performance in recent years. Progress in operational efficiency could therefore also have a positive impact on the valuation of the entire group in the medium term.
Overall, robust prospects for the group
Overall, the Jefferies analysis paints a much friendlier picture for Siemens Energy. From the analysts’ perspective, the combination of better-than-expected quarterly figures, continued demand in central business areas and initial signs of stabilization at Siemens Gamesa suggests continued positive development. “Overall, things are going smoothly for the Munich team,” said Jefferies expert Ferhani.
The assessment thus joins a series of more optimistic market voices that increasingly see the group as a beneficiary of the global transformation of the energy infrastructure.
This is also reflected in the Siemens Energy share price: the share rose temporarily by 2.34 percent to 173.50 euros in XETRA trading on Monday. Although the stock is well below its all-time high of 191.66 euros, the Jefferies price target of 215 euros gives hope that Siemens Energy shares could soon move into completely new territory.
Carolin Ludwig, Martina Köhler, editorial team finanzen.net
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