Deutsche Bank lifts Siemens Energy stock target, keeps buy on growth prospects

Published 16/09/2024, 14:00
Deutsche Bank lifts Siemens Energy stock target, keeps buy on growth prospects


On Monday, Deutsche Bank expressed a positive outlook on Siemens Energy AG (ENR:GR) (OTC: SMEGF) shares, elevating the stock's price target from EUR29.00 to EUR31.00. The firm reiterated its Buy rating on the company's shares, signaling confidence in Siemens Energy's growth prospects. The adjustment follows observations of strengthening market conditions for the company's Gas and Grid divisions, with both volume and pricing showing signs of improvement.


The analyst from Deutsche Bank highlighted that recent statements from the US-based GE Vernova suggest the industry is in the early stages of an accelerating investment cycle necessary for the energy transition. This perspective supports the view that Siemens Energy is well-positioned to benefit from the ongoing shift towards sustainable energy solutions.


Siemens Energy's subsidiary, Gamesa, is anticipated to experience a non-linear path to breakeven, yet the analyst anticipates that its turnaround is likely to align with forecasts for fiscal year 2026. The analyst's comments suggest that despite potential short-term fluctuations, the long-term trajectory for Gamesa remains positive.


Looking forward, expectations are set for Siemens Energy to revise its growth and margin goals upwards in November for fiscal year 2026. The company is also seen as evolving into an enterprise with a 10% EBITA margin later in the decade. The Buy rating is maintained based on these prospects, with the analyst projecting a robust financial performance for Siemens Energy in the years to come.

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

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