FRANKFURT (dpa-AFX) - Following a pessimistic outlook from JPMorgan, Siemens Energy shares were once again the weakest DAX stock of the current year on Friday. With a last price of 11.43 euros, the shares of the energy company have lost around 35 percent in value again in 2023. Bayer and Zalando's losses for the year are thus a tad smaller again.
In their annual outlook for the capital goods sector, the experts at investment bank JPMorgan put Siemens Energy on their list of "stocks to avoid". This is the logical consequence of the downgrade to "Underweight" with a target price of just 9.20 euros. Analyst Andrew Wilson thus assumes that the shares will have to give up around half of their recovery rally from the October low.
"The negative surprises at Siemens Gamesa have eroded confidence in the management," said Wilson, referring to the numerous profit warnings issued by the wind power subsidiary. Siemens Gamesa is making significant losses and will probably not be profitable again until the 2025/26 financial year - two years later than originally planned.
There is "no easy way to create value" at Siemens Energy, Wilson continued. Instead, he expects that further measures will be necessary to strengthen the balance sheet./ag/ajx/tih