UBS remains skeptical about Siemens Energy
The Swiss bank UBS has maintained its rating for Siemens Energy at ‘Sell’ with a price target of 38 euros following the latest quarterly results and a forecast revision upwards. Despite a strong quarterly result and an increase in market expectations for revenue and adjusted operating profit (Ebita) by about ten to twelve percent, UBS continues to view the stock negatively given its risk-return profile.
Key details regarding UBS’s rating:
- Current rating: Sell
- Price target: 38 euros (unchanged)
- Reasoning: The current valuation level of the stock is deemed too high.
- Time horizon: 12 months
Market context and differing opinions
The ‘Sell’ rating is particularly relevant since Siemens Energy is a significant DAX company. This assessment by an influential bank like UBS could unsettle investors. However, other analysts, such as those from Deutsche Bank, appear somewhat more optimistic and maintain a buy recommendation, although they have lowered their price target.
Implications for investors
For investors, the ‘Sell’ rating signals caution regarding new investments in Siemens Energy shares. The current price target of 38 euros is significantly below the current stock price, indicating substantial downside potential. Investors should consider this information in their decisions and weigh the potential risks, especially given the company’s importance in the DAX.
In summary, UBS’s recommendation remains skeptical of Siemens Energy shares despite positive business figures, taking into account the valuation level and ongoing market uncertainties.