(News Bulletin 247) – Oddo BHF maintains its neutral rating on the Siemens Energy share, with a revised price target of
23.1 to 18.5 euros.
While Siemens Gamesa is faced with technical problems affecting its offshore fleet, the group indicates that it is “reviewing the business plan for the offshore activity, since the productivity efforts are not on the scale expected”, reports the ‘analyst.
In this context, Oddo BHF includes 1.1 MdE of additional expenses (after the 472 ME already recorded in Q1) related to the necessary repairs and this on Q3 alone. It also specifies that it is possible that the amount is higher and/or that it is spread over several quarters.
Thus, the broker indicates that its 2024 EPS are revised down by 9.6%.
‘The group’s positioning (electrification, renewables) is very attractive, but the pace of improvement in margins at Siemens Gamesa is uncertain and the costs associated with the repairs necessary following the quality problems of the 4X and 5X make us cautious’, concludes the analysis office.
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