On Wednesday, Deutsche Bank reiterated its buy recommendation on Siemens Energy, with a price target raised from €23 to €26, hailing the good start to the year made by the German group.

In a research note, the analyst believes that the company's recently raised annual forecasts could prove rather cautious, and says he expects its performance to come out at the top end of the range.

'With its balance sheet structure now restored (...) and signs of recovery in wind power, investors will finally be able to focus on the rest of the business (71% of sales), which is running at full capacity.) and signs of recovery in wind power, investors will finally be able to focus on the rest of the business (71% of sales), which is running at full speed', adds the intermediary.

DB adds that the rich valuation posted by its American counterpart GE Vernova, with an Enterprise Value/C.A. ratio of 1.23x compared with just 0.68x for Siemens Energy, should provide another element of support during this turnaround process.

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