Siemens Gamesa: Credit Suisse downgrades stock
(CercleFinance.com) - Credit Suisse has downgraded its rating on the Siemens Gamesa share to neutral (vs.
outperform), but has raised its target price to 23.40 euros (from 16.50 euros).
"We increase our offshore wind installation forecast to 5GW in 2025 and raise our growth rate across 2027-40 to c5% p.a. (from c2.5%)," the broker said.
"Our 2021E/22E/23E EPS estimates fall by 41%/16%/5% to align with guidance and the costs of delivering the business plan".
Credit Suisse expects EBIT margins of 13% in offshore, 20% in services and 10% in onshore, which will enable the entire group to reach a range of 8%-10%.
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