Siemens Gamesa: UBS trims target price
(CercleFinance.com) - UBS has trimmed its earnings estimates for Siemens Gamesa due to delayed margin expansion, while reducing its target price for the Spanish-based wind turbine maker.
"We cut our near-term estimates by approximately 10% as we see the margin expansion story pushed out by a year," the Swiss broker wrote in a note.
The broker has lowered Siemens Gamesa's target price to 15 euros, from 15.2 euros, which still represents 13% upside.
Yet, UBS maintains its "buy" rating on the stock, saying that there has been a delay in the outlook for margin expansion, albeit still present.
The broker said it remains positive on the outlook beyond fiscal-year 2020.
Siemeans Gamesa shares are currently down 1.5% at 13.2 euros, but have surged by over 23% year-to-date, outperforming the benchmark IBEX, which is up 15%.
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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.
"We cut our near-term estimates by approximately 10% as we see the margin expansion story pushed out by a year," the Swiss broker wrote in a note.
The broker has lowered Siemens Gamesa's target price to 15 euros, from 15.2 euros, which still represents 13% upside.
Yet, UBS maintains its "buy" rating on the stock, saying that there has been a delay in the outlook for margin expansion, albeit still present.
The broker said it remains positive on the outlook beyond fiscal-year 2020.
Siemeans Gamesa shares are currently down 1.5% at 13.2 euros, but have surged by over 23% year-to-date, outperforming the benchmark IBEX, which is up 15%.
Copyright (c) 2019 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.