SIEGY - Siemens Energy's wind division seen sustaining losses until 2026 analysts say
2023-08-09 15:35:57 ET
Siemens Energy's ( OTCPK:SMEGF ) ( OTCPK:SIEGY ) wind turbine unit likely will not reach breakeven before 2026 , and its recovery will take longer than expected, analysts at J.P. Morgan and Deutsche Bank said Wednesday.
J.P. Morgan downgraded the stock to Neutral from Overweight, noting that while the problems at Siemens Gamesa had been widely known, they were driven by the onshore segment, but Siemens Energy ( OTCPK:SMEGF ) ( OTCPK:SIEGY ) has unveiled quality problems around rotor blades and bearings.
"However, the inflation and ramp-up issues have now started to impact the offshore business, the crown jewel, which shows the company's bargaining power is limited despite it being the undisputed leader in offshore," JPM said.
Deutsche Bank analyst Gael de-Bray maintained his Hold rating while lowering his stock price target to €18 from €20.
The analyst moves followed the company's warning of a €4.5B loss this year due to the variety of quality and ramp-up problems at the wind turbine business.
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Siemens Energy's wind division seen sustaining losses until 2026, analysts say