(CercleFinance.com) – The Siemens Energy share continued its revaluation on Friday on the Frankfurt Stock Exchange, supported by an increase in recommendation from Deutsche Bank.
The intermediary says he has switched to ‘buy’ versus ‘hold’ on the value, 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.
Around 2:30 p.m., the stock gained 1%, thus recording one of the best performances of the day on the DAX index. It now shows a gain of more than 62% since the start of the year.
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