Siemens Energy hits record high as Morgan Stanley boosts outlook

Siemens Energy AG

03/11/2025 15:57

** Shares in Siemens Energy ENR1n.DE are up around 3% at an all-time high after Morgan Stanley raised its target price over an improved mid-term outlook

** The broker expects higher EBITDA margin for gas and grid businesses in 2026 and 2027 and a 2028 EBITDA 20-44% ahead of current consensus thanks to a positive pricing trend and a read-across from peer GE Vernova GEV.N

** The broker says the current consensus is underestimating the price contribution to new equipment revenues from gas and the grid backlog margins

** Slot reservations for gas "will be in focus", as the co reported 58 GW including backlog as of June, signalling sustained demand for gas turbines

** It also sees that the co's shares are trading at a 9.7 times the expected EV/EBITDA for 2028, at a 20% discount to the European cap goods sector and below peers

** Including Monday's rise, the stock has gained 119.43% YTD.

 (Reporting by Emanuele Berro)

 ((emanuele.berro@thomsonreuters.com))