Deutsche Bank announced on Friday that it had raised its price target for Siemens Energy from €10 to €12, while maintaining its recommendation to 'hold'.

Following the energy group's investor meeting, the analyst believes that the gas and grid businesses are well on their way to achieving their medium-term objectives, but that the turnaround of the Siemens Gamesa subsidiary is likely to take much longer, with a rocky road ahead.

With regard to the 2.5 to 3 billion euro divestment target, the intermediary stresses that these funds will provide an essential safety cushion, while ruling out the threat of a forthcoming capital increase.

Siemens Energy is therefore not out of the woods, warns Deutsche, who points out that Siemens Gamesa will weigh on the group's cash flow until at least 2026.

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