Morgan Stanley raises Siemens Energy stock target to EUR90

Published 27/05/2025, 08:30
Morgan Stanley raises Siemens Energy stock target to EUR90

On Tuesday, Morgan Stanley (NYSE:MS) updated its outlook on Siemens Energy AG (ETR:ENR1n) (ENR:GR) (OTC:SMEGF), increasing the price target from EUR80.00 to EUR90.00. The firm maintained its Overweight rating on the stock, signaling confidence in the company’s future financial performance.

Morgan Stanley analysts highlighted Siemens (ETR:SIEGn) Energy as a top pick, citing expectations for significant earnings upgrades that could propel the stock price upward. The firm’s forecast for Siemens Energy’s 2028 EBITA (earnings before interest, taxes, and amortization) is 20% higher than the current market consensus. This optimistic stance is based on a pattern observed after the release of Siemens Energy’s past quarterly results, which have repeatedly led to upward movements in the company’s share price.

The analysts anticipate that the upcoming third-quarter results, expected on August 6, 2025, might prompt an upgrade in EBITA margin guidance for Siemens Energy’s Grid division. Further into the future, Morgan Stanley expects that on November 14, 2025, Siemens Energy will issue new group EBITA margin guidance for 2028. The firm’s base case suggests that the guidance will aim for 12-14% EBITA margins in 2028, compared to the current consensus of 12.2% and Morgan Stanley’s own estimate of 13.8%.

The report also suggests that consensus estimates may be underestimating not only EBITA margins but also revenue growth. Morgan Stanley forecasts a 12% revenue compound annual growth rate (CAGR) for Siemens Energy from 2024 to 2028, which is more optimistic than the consensus estimate of 10%. The analysts believe that the company is in a "backlog margin discovery phase," implying that the most profitable margins from the backlog have yet to be realized.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.