Siemens Energy: Oddo BHF raises TP
(CercleFinance.com) - Oddo BHF maintains its "neutral" rating on Siemens Energy shares, with its target price raised from E37 to E46.
The analyst cites a 'reassuring' quarterly publication, with continued strong order intake (+42% in organic terms, with an improving margin on backlog) and better-than-expected FCF.
Our 2025 guidance (sales growth of 8%-10% on a comparable basis and adjusted EBITA margin of 3%-5%) logically includes this acceleration in demand in most divisions, the broker says.
Nevertheless, it is significantly reducing its 2025 EPS estimates, taking into account: (1) a higher-than-expected operating loss at Siemens Gamesa (E1.3bn expected), (2) restructuring charges at Siemens Gamesa (E200m) and (3) the fact that Gamesa's losses are not deductible, the analyst continues.
Against this backdrop, Oddo BHF expects organic sales growth of 9.2% and an adjusted EBIT margin of 4.4% in 2025.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The analyst cites a 'reassuring' quarterly publication, with continued strong order intake (+42% in organic terms, with an improving margin on backlog) and better-than-expected FCF.
Our 2025 guidance (sales growth of 8%-10% on a comparable basis and adjusted EBITA margin of 3%-5%) logically includes this acceleration in demand in most divisions, the broker says.
Nevertheless, it is significantly reducing its 2025 EPS estimates, taking into account: (1) a higher-than-expected operating loss at Siemens Gamesa (E1.3bn expected), (2) restructuring charges at Siemens Gamesa (E200m) and (3) the fact that Gamesa's losses are not deductible, the analyst continues.
Against this backdrop, Oddo BHF expects organic sales growth of 9.2% and an adjusted EBIT margin of 4.4% in 2025.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.