Siemens Energy Stock: Baader Bank Raises Target to €146 – Is It Still a Buy in 2026?
- Why Is Siemens Energy Stock Soaring?
- The Bull Case: Cash Flows and AI Tailwinds
- The Elephant in the Room: Siemens Gamesa
- Balance Sheet Cleanup and Dividend Return
- Analysts Are Split – Who’s Right?
- FAQ: Your Burning Questions Answered
Siemens Energy has emerged as one of the DAX's top performers, soaring over 130% since 2025, trailing only Rheinmetall. While Baader Bank and JPMorgan are bullish, Barclays remains skeptical. With record orders, a €6B buyback plan, and AI-driven energy demand, the stock is polarizing analysts. But can its wind division finally turn around? Here’s the DEEP dive.
Why Is Siemens Energy Stock Soaring?
Siemens Energy (ETR: ENR) has been a rocket ship, climbing from under €7 in late 2023 to over €120 by 2026. Baader Bank just hiked its target to €146, citing a record €138B order backlog and margin expansion to 14-16% by 2028. JPMorgan’s even more optimistic at €160, while Barclays throws cold water with an €85 target. The average? €132.71 – implying 10% upside from current levels. (Source: TradingView)
The Bull Case: Cash Flows and AI Tailwinds
2025 was a banner year: orders jumped 20% to €58.9B, revenue grew 15% to €39.1B, and net profit hit €1.685B. Grid Technologies stole the show with €21B+ orders, while Gas Services sold a record 194 turbines. Management now forecasts 11-13% sales growth for 2026 and aims to double net profit to €3-4B. The AI boom’s insatiable power needs are icing on the CAKE – data centers don’t run on hopes and dreams.
| Metric | 2025 | 2026 Forecast |
|---|---|---|
| Revenue | €39.1B | 11-13% growth |
| Net Profit | €1.685B | €3-4B |
The Elephant in the Room: Siemens Gamesa
That 70x P/E ratio? Blame the wind division. Siemens Gamesa’s restructuring is dragging, though management insists on breakeven by 2026. For context, the sector average P/E is ~30. As one BTCC analyst quipped, “You’re paying Tesla multiples for a business that still smells like a fixer-upper.”
Balance Sheet Cleanup and Dividend Return
The company replaced its €11B state-backed facility with a €9B private loan, and Moody’s upgraded its rating to investment-grade. After a 4-year hiatus, dividends are back at €0.70/share. Next catalysts? Q4 earnings on February 11 and the Berlin AGM on February 26 – where Gamesa’s progress will be under a microscope.
Analysts Are Split – Who’s Right?
Baader and JPMorgan see a renewables juggernaut; Barclays fears a valuation bubble. Personally, I’d watch the 200-day moving average (€112) as support. Break that, and the bears might take over. But with €6B in buybacks looming, dips could get bought aggressively.
FAQ: Your Burning Questions Answered
Is Siemens Energy stock overvalued?
At 70x earnings, it’s priced for perfection. The wind division’s turnaround is non-negotiable for further gains.
When will Siemens Gamesa break even?
Management targets 2026, but supply chain snarls could delay this. Watch the Q4 margins for clues.
What’s the biggest risk?
Execution. Hitting those 2028 margin targets requires flawless performance across all divisions.
