Karsten Leineke
This article is about Siemens Energy (OTCPK:SMEGF), and how I've changed my view from Hold to Buy.
Back in August, I wrote an article Siemens Energy: Awaiting Q4 Results Keenly, that the Q4 earnings release on November 13th
Siemens Energy: Not Too Late To Be Bullish
Summary
- Siemens Energy's Q4 earnings release highlighted strong growth in Grid Technologies, driven by the electrification megatrend, with a significant increase in free cash flow pre-tax.
- The company's fiscal year 2024 results exceeded upgraded guidance, with Grid Technologies leading in profitability and order momentum and a promising outlook for FY 2025.
- Despite challenges in the Gamesa segment, Siemens Energy is on track for a turnaround, aiming for profitability by FY 2028 amid competitive pressures from Chinese OEMs.
- SMEGF's strategic positioning in gas, grid, and Transformation of Industries segments makes it a compelling investment, with a clear path to earnings growth and favorable market conditions.
Global investing.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SMEGF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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