BUZZ-Deutsche Bank ups Siemens Energy to 'buy', sees solid Q2

Reuters05-03

** Deutsche Bank raises Siemens Energy to "buy" from "hold", seeing upside for the power equipment maker from Q2 results set to be reported on May 8

** "GE Vernova fetched a valuation far in excess of that of Siemens Energy, thus creating a valuation north star while the group irons out its onshore wind turbine quality issues," the broker says

** DB projects another good quarter for Siemens Energy in terms of orders and margins, which it expects to reach the upper ends of their respective 2024 target ranges

** It expects the management to raise its pre-tax FCF outlook from negative 1 bln euros ($1.07 bln) to between negative 0.5 bln euros and breakeven this year

** "Sentiment has been turning positive for offshore wind in the UK and the U.S. following revised offtake pricing for several projects," DB says

** However, the company's turnaround will take time and Siemens Gamesa will likely not reach breakeven before the latter half of 2026, it says

** Siemens Energy shares are up nearly 62% YTD

($1 = 0.9310 euros)

(Reporting by Ozan Ergenay)

((ozan.ergenay@thomsonreuters.com))

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