Background and Forecast Adjustment
Siemens Energy has raised its forecast for the current fiscal year 2024/25 following a strong second quarter, which could have positive effects on the stock and may attract private investors.
- Revenue Forecast: Siemens Energy now projects revenue growth of 13 to 15 percent on a comparable basis, exceeding previous expectations of 8 to 10 percent.
- Result Margin: The result margin before special effects has been raised to 4 to 6 percent, previously it was at 3 to 5 percent.
- Net Income: The company aims for a net income of up to one billion Euros, having previously just targeted break-even.
Quarterly Figures
The second quarter showed impressive growth:
- Order intake rose by about 52.3 percent to around 14.433 billion Euros, significantly above market expectations of approximately 12.485 billion Euros.
- Revenue grew by about 20.7 percent to around 9.962 billion Euros, while the market had expected about 9.319 billion Euros.
- Profit before special effects improved significantly: it rose from around 170 million Euros last year to approximately 906 million Euros, corresponding to a margin of about nine percent. This was well above expectations of around six percent margin or about 577 million Euros.
Stock Market Reactions
The Siemens Energy stock initially reacted positively to the announcement of the raised forecasts. In Tradegate trading, it rose by nearly half a percent at times. However, there were losses on other trading venues like XETRA; there, the stock fell by more than three percent at times.
Analyst Assessments
Analysts have differing opinions on the 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 indicate 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 energies 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, one should also consider potential risks – particularly those from rising interest rates or geopolitical uncertainties – as well as evaluate 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, considering both current trends and long-term perspectives.