(CercleFinance.com) – Deutsche Bank announced on Friday that it had switched to ‘buy’ from ‘hold’ previously on the Siemens Energy stock, with a price target raised from 14 to 23 euros.
In its research note, Deutsche Bank notes that GE Vernova, the American competitor of Siemens Energy which recently IPO, displays a valuation much higher than that of its German counterpart.
From his point of view, this situation will make it possible to create a benchmark for the group at a time when it is trying to resolve the quality problems of its wind turbines.
The analyst adds that a possible upward revision of its free cash flow (FCF) targets and an upcoming return to the market of its 4X and 5X turbines also suggest a more favorable risk/return profile.
In the longer term, Deutsche Bank believes that renewable energies should benefit from the increase in electricity demand, particularly in the United States where the explosion of AI requires powering data centers.
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