UBS changed its bearish outlook on Siemens Energy to bullish after the stock rose 165%
Siemens Energy shares are up 165% since UBS' advice to "sell" a year ago / Photo: Mo Photography Berlin / Shutterstock.com
A year after UBS recommended selling shares of energy equipment maker Siemens Energy, the bank has changed its stance and given one of Europe's most successful large companies a positive assessment, Bloomberg writes. The upgrade follows a 165% rise in quotes since the UBS team led by Supriya Subramanian downgraded the company in January 2025, recommending to "sell" its securities. At the time, UBS warned that Siemens Energy's stock valuation was "overvalued." Now UBS expects the company's shares to grow by another 27%.
UBS analyst Christopher Leonard upgraded shares of Siemens Energy from a "sell" rating to a "buy" rating in a research note on Friday, January 23rd. He also raised the target price of the securities from €38 to €175, thus taking one of the most bullish positions among analysts tracking the stock, Bloomberg notes. Leonard emphasized that Siemens Energy's order growth in the gas services and power grid segments should provide the company with earnings growth for the next decade.
At trading in Frankfurt on January 23, the shares of the equipment manufacturer jumped 4% to €142.95, which is an all-time high for Siemens Energy. The stock ended the day up 3.1% at €141.8.
According to Bloomberg calculations, the securities are now trading at a multiple of 34 to expected earnings in 12 months (P/E ratio). A year ago, at the time of downgrade by UBS, this indicator was 41. That is, acquisition of shares now will be more profitable than a year ago, the agency notes.
What other analysts recommend
According to MarketScreener, on January 22, JPMorgan recommended buying Siemens Energy securities, keeping the target price at €160. January 14, RBC also recommended to buy the securities, keeping the target at €150. On January 6, Bernstein maintained its recommendation to buy shares of the energy equipment maker, keeping the target price at €150.
In total, according to MarketScreener, 19 analysts out of 25 who track the securities recommend buying Siemens Energy shares. Five advise to keep them in the portfolio, and one - to sell. At the same time, the Wall Street consensus price target of €137.4 shows that most analysts do not expect the stock to rise further.
This article was AI-translated and verified by a human editor
