Siemens Energy: Berenberg raises target price

(CercleFinance.com) - In a note published on Friday, Berenberg analysts raised their target price for the share from E25 to E30 (cp: E17.
6, +1.2%), while maintaining their Buy recommendation on it.

The German bank says it can't help noticing the similarities between Siemens Energy and GE Vernova, GE's recently floated energy division, in terms of size, business lines and profitability.

Yet, as Berenberg points out, Vernova shares are currently trading at a valuation 2.5 times higher than that of Siemens Energy, a fundamentally flawed assessment in its opinion.

The broker estimates that the market assigns a negative value of around E11bn to the Siemens Gamesa wind power subsidiary, whereas it assigns it a potentially positive value of around E6bn.


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