Siemens Energy: Deutsche Bank cuts TP further
(CercleFinance.com) - On Wednesday Deutsche Bank reduced its target price for Siemens Energy shares from E17 to E13, maintaining its "hold" rating on the stock.
The analyst considers Bloomberg reports that Siemens Energy is considering abandoning its troubled 5X onshore wind turbine platform in order to focus on developing an entirely new technology.
Deutsche Bank says that this would come as a huge disappointment, as such a decision would entail high costs (up to E1bn) and would sideline the company from the market for at least 18 months.
Instead, the broker believes that Siemens Energy should instead consider making asset disposals, as well as capital raising that would enable it to strengthen its balance sheet in preparation for future charges.
In these circumstances, analysts prefer to steer clear of the stock, prefering Denmark's Vestas, on which they have a buy rating.
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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.
The analyst considers Bloomberg reports that Siemens Energy is considering abandoning its troubled 5X onshore wind turbine platform in order to focus on developing an entirely new technology.
Deutsche Bank says that this would come as a huge disappointment, as such a decision would entail high costs (up to E1bn) and would sideline the company from the market for at least 18 months.
Instead, the broker believes that Siemens Energy should instead consider making asset disposals, as well as capital raising that would enable it to strengthen its balance sheet in preparation for future charges.
In these circumstances, analysts prefer to steer clear of the stock, prefering Denmark's Vestas, on which they have a buy rating.
Copyright (c) 2023 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.