Siemens Energy under pressure in Frankfurt; Barclays expects multiples to fall
Analysts have downgraded their recommendation on the company to “underweight” from the previous “equal-weight”, whilst raising the target price to 130 euros from the previous 110
(Il Sole 24 Ore Radiocor) - Siemens Energy shares came under selling pressure in Frankfurt: the stock closed the session down 8.9 per cent. Share prices were affected by the assessment by Barclays analysts, who, in a sector report, downgraded their recommendation on the company to “underweight” from the previous “equal-weight”, whilst raising the target price to 130 euros from the previous 110.
“We recognise the significant improvement in the execution” of the strategy and “we are seeing a significant increase in returns for shareholders”, admit the experts, who nevertheless believe that “valuations will begin to fall from current levels”. A market capitalisation of 145 billion does indeed reflect “an indefinite improvement in earnings that are already at cycle highs”, whilst, according to the experts, orders in the gas sector “will peak this year” and those linked to data centres “could slow down significantly”, given that deliveries for the next 3–4 years have already been covered by the order book from the last 15–18 months.
