- The overall wind energy sector and Siemens Gamesa had a very good run last year, driven by a renewed focus on sustainability and new government initiatives.
- Siemens Gamesa is the leader in the offshore wind energy sector that is expected to grow by 22% CAGR 2019-2025 in terms of annual installation globally.
- While we believe SGRE will maintain its leading position, we believe the rally is overdone after considering a more realistic growth rate and competitive risks.
- The stock is currently trading at a significant premium to its closest peer which we do not believe is justified. Our base case scenario suggests a 24% potential downside.
For further details see:
Siemens Gamesa: Significant Growth Already Priced In