Background and Forecast Adjustment
Siemens Energy has raised its forecast for the current fiscal year 2024/25 following a compelling second business quarter, which could have positive effects on the stock and is likely to interest private investors.
- Revenue Forecast: Siemens Energy now anticipates revenue growth of 13 to 15 percent on a comparable basis, exceeding previous expectations of 8 to 10 percent.
- Profit Margin: The profit margin before special effects has been raised to 4 to 6 percent, up from the previous 3 to 5 percent.
- Net Profit After Tax: The company aims for a net profit after tax of up to one billion euros, having previously only sought to break even.
Quarterly Figures
The second quarter showed impressive growth:
- Order intake increased by about 52.3 percent to approximately 14.433 billion euros, significantly exceeding market expectations of about 12.485 billion euros.
- Sales revenue grew by about 20.7 percent to approximately 9.962 billion euros, while the market had expected about 9.319 billion euros.
- The result before special effects improved significantly: it rose from about 170 million euros last year to approximately 906 million euros, corresponding to a margin of around nine percent. This was well above expectations of approximately six percent margin or around 577 million euros.
Stock Market Reaction
The Siemens Energy stock initially reacted positively to the announcement of the increased forecasts. In Tradegate trading, it rose by nearly half a percent at times. However, there were also losses in other trading venues like XETRA, where the stock fell by more than three percent at times.
Analyst Assessments
Analysts have differing opinions about Siemens Energy stock:
- Some banks like Deutsche Bank and Goldman Sachs recommend “Buy,” while JP Morgan remains neutral and Jefferies issues a hold recommendation.
- The average price target is around 50 EUR per share; this could suggest that some analysts remain cautious despite the positive news or see limited potential for further price gains.
Future Prospects
Siemens Energy operates in a dynamic environment and may benefit from the trend towards renewable energy through its subsidiary Siemens Gamesa. Despite challenges in the equity sector, there are plans to strengthen equity in the coming years.
For private investors, this presents an interesting opportunity for diversification in the energy sector. However, potential risks should also be considered – especially those from rising interest rates or geopolitical uncertainties – as well as the company’s long-term strategy.
Overall, Siemens Energy appears well-positioned for future growth in the energy sector; however, investors should weigh their decisions carefully and consider both current trends and long-term perspectives.