(CercleFinance.com) – Siemens Energy lost almost 2% in Frankfurt while this morning Oddo announced that it was maintaining its ‘neutral’ rating on the stock, with a price target revised downwards, from 17.9 to 15, 9 euro.
While the analysts believe that Q4 results are ‘solid’ with notably ‘impressive’ orders and FCF, the SGRE file (Siemens Gamesa Renewable Energy) remains at the center of attention, while the supply acquisition by Siemens Energy of SGRE’s minority shareholders (32.9%) will end on December 13 (offer at €18.05 per share).
Oddo stresses that the operational performance of Siemens Energy will remain negatively impacted by SGRE with reduced visibility as to the extent of the losses to be expected (Oddo expects a loss of approximately 200 to 800 ME)
In this context, the analyst indicates that he is revising his forecasts significantly downwards (-26% on 2023 and 2024 EPS).
‘Investors must always arbitrate between the long-term prospects, which are attractive, with an energy market destined to grow significantly and a recovery in margins, and the short-term prospects, which are very uncertain on SGRE’ , concludes the broker.
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