Hi. Is it a good idea to buy Siemens Energy ag shares now?
4/17/2025 06:49pm
**Siemens Energy AG (SMEGF) appears to be a strong candidate for investment**, and here's why:
1. **Positive Business Development and Growth Outlook**: Siemens Energy has recently raised its outlook for the fiscal year 2025, citing strong business development and positive results in key segments. The company expects comparable revenue growth of 13% to 15% and a profit margin before special items of 4% to 6%. This is a significant upgrade from previous guidance, indicating confidence in its ability to generate higher profits.
2. **Strong Financial Performance**: The company's preliminary second-quarter results showed higher profit and revenue compared to the previous year. Siemens Energy now expects a net income of up to €1 billion ($1.14 billion), excluding demerger-related items, which is a substantial improvement from a previous break-even guidance.
3. **Technical Indicators Supporting the Bullish Outlook**: Technical indicators such as the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), and KDJ all point to bullish signals. The stock is also trading above its various moving averages, which is a sign of upward momentum.
4. **Dividend Yield and Stability**: The stock offers a dividend yield of 2.11%, with a dividend continuous duration of 11 years and a dividend growth duration of 0 years. This suggests a stable and sustainable income stream for investors.
5. **Market Sentiment and Analyst Ratings**: Analysts have given Siemens Energy a consensus recommendation of "Moderate Buy," indicating a positive outlook. Deutsche Bank has raised its price target to €68, showing confidence in the stock's potential for growth.
However, it's important to consider potential risks, such as the impact of U.S. tariffs on the company's business and the broader market sentiment. Despite these risks, the current financial performance and growth outlook of Siemens Energy suggest that it could be a good time to consider investing in the stock. As always, it's recommended to conduct a thorough analysis and consider your individual investment goals and risk tolerance before making any investment decisions.