(News Bulletin 247) – Deutsche Bank indicated on Monday that it was maintaining its ‘hold’ recommendation on Siemens Energy, but lowered its price target for the share from 26 to 20 euros.
From the analyst’s point of view, the severe earnings warning issued by the German energy group last Friday, linked to the disappointing performance of its subsidiary Siemens Gamesa, raises some uncertainties regarding its financial situation.
Beyond the difficulties encountered in the deployment of wind projects at sea (‘offshore’) and insufficient productivity gains, the intermediary explains that he is alarmed by the inability of management to correctly assess the financial impact of the file.
‘These quality problems appear specific to the company and we now expect Siemens Gamesa to also lose market share in the onshore (onshore wind power, editor’s note)’, he adds.
For DB, these uncertainties could well revive fears surrounding the balance sheet structure of the group, which could, according to him, suggest the need for a capital increase of at least one billion euros.
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