Berenberg raised its estimates and price target for Siemens Energy (ENR.F), noting the revamp of ageing grid infrastructure and the broader push for electrification as key drivers for the German energy technology company.
"We increase our estimates slightly for organic revenue growth within the Grid Technologies segment. We now forecast revenue of EUR14bn, EUR16.9bn and EUR20bn for 2026, 2027 and 2028 respectively. This moves our estimates a low-single-digit percentage above consensus for these years," analysts said in a Monday note focused on the electrical sector. "We also forecast above-guidance profit margins of c20-21% for the 2026-28 period. This is driven, in our view, by the expected strength in orders translating through to greater top-line volumes and from pricing benefits supporting profit margins. We make minor changes to our estimates across the rest of the business."
As such, Berenberg's sales, EPS and EBITA estimates for the group were increased over 2026 to 2028.
The price target increased to 205 euros from 200 euros, with an unchanged buy rating.