Siemens and Siemens Energy: “Unrealizable expectations” – stocks suffer from recession fears

Siemens and Siemens Energy: “Unrealizable expectations” – stocks suffer from recession fears

In the weak market environment, the shares of Siemens and Siemens Energy also lost ground again on Monday. A new industry study by Bernstein Research has a particularly negative effect. Due to the increasing danger of a collapsing economy, the price targets for the two shares were significantly lowered.

Analyst Nicholas Green has now included the fear of recession in his valuation models and has therefore adjusted his targets for numerous European capital goods groups. This means that the dangers can be better calibrated. However, he sees massive risks in what is actually still a relatively mild scenario, especially for shares that are considered “safe havens”. The market expectations are “unrealizable high” for some groups.

Green considers Siemens and Siemens Energy to be unprepared for a recession. At Siemens, he therefore lowered the price target significantly from 117 to 68 euros, and lowered the rating from “Market-Perform” to “Underperform”. He cut the assessment of Siemens Energy even more clearly. The new price target is eight euros – after previously 17 euros. The rating remains “Underperform”.

It is becoming increasingly clear how investors and analysts are pricing in the fear of a recession. Siemens and Siemens Energy would suffer in such a scenario. Nevertheless, a lot should be priced in after the price losses of the past few weeks. DER SHAREHOLDER expects prices to continue to rise at Siemens in the medium term. At the moment, however, only speculative investors should take action due to the weak sentiment.

The US analysis company Bernstein Research has lowered the price target for Siemens Energy from 17 to 8 euros and left the rating at “underperform”. Analyst Nicholas Green adjusted the rating for European capital goods groups in an industry study available on Monday to a scenario of moderate economic weakness. This at least helps to calibrate the risks, according to Green. He sees massive risks in this relatively mild scenario, especially for shares that are considered “safe havens”. He downgrades six stocks to “underperform” — including many “quality favorites.” On average, he cuts his profit forecasts by 6 percent and price targets by 35 percent. He considers the market expectations to be “unreasonably high”. corporations.