(News Bulletin 247) – Bank of America announced on Wednesday that it had resumed coverage of the Siemens Energy stock with a buy recommendation and a target price of 24 euros.
According to the analyst, the German energy group is well placed to take advantage of state programs to support the economy, such as the Brussels climate plan (‘Green Deal’) or the law on the reduction of inflation (IRA) in the United States.
In its study, BofA also judges that the worst is over for Siemens Gamesa, the wind turbine subsidiary of Siemens Energy, which means that the troubled entity is now a ‘free option’ for investors in for its recovery.
For the rest, the intermediary believes that high-margin businesses, such as services for the gas industry or the digital transformation of energy, have a sufficient order book to allow an acceleration of growth and to aim for a free cash flow (FCF) of more than 1.6 billion euros over the long term (excluding Siemens Gamesa).
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