Siemens: BarCap cuts target price.
(CercleFinance.com) - Barclays Capital (BarCap) maintains its “weight in line” recommendation on Siemens and has cut its target price for the share by 4% to 120 euros, highlighting long-term structural challenges facing the German group in electricity-gas.
"Since we published our first report on this topic in March this year (link), the cost of renewables has continued to decline and, more importantly, energy storage projects are starting to gain momentum in winning commercial orders" the broker underlined.
The broker is concerned that over time the market for small gas turbines (on which Siemens is optimistic) may face substitution, while energy storage costs continue to decline.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"Since we published our first report on this topic in March this year (link), the cost of renewables has continued to decline and, more importantly, energy storage projects are starting to gain momentum in winning commercial orders" the broker underlined.
The broker is concerned that over time the market for small gas turbines (on which Siemens is optimistic) may face substitution, while energy storage costs continue to decline.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.