Siemens Energy has taken a breather from its blistering run, shedding about 13% from an April record high of €188 to as low as €163, before steadying around €172.68. That high-altitude consolidation, however, is being met with fresh bullish signals from Berlin — a government plan to tender 12 gigawatts of gas-fired power capacity starting in 2026 — which analysts see as a multi-year demand driver for the company’s turbine business.
Analysts have already been lifting their sights. Jefferies raised its price target to €215 on May 18, while JPMorgan, Goldman Sachs, Deutsche Bank and Berenberg target between €200 and €225. The median consensus stands at €186.30, offering roughly 9% upside from current levels. Of the 11 analysts covering the stock, eight rate it a ‘Buy’ and three a ‘Hold’.
The enthusiasm is backed by a sharp earnings recovery. For fiscal 2026, analysts forecast earnings per share of €4.28, compared with €1.63 estimated for 2025. In the second quarter, Siemens Energy reported EPS of €0.89, nearly double the €0.50 a year earlier. The dividend trajectory is equally promising: after a €0.70 payout for 2025, expectations for 2026 have jumped to €1.84 per share.
Technically, the shares remain well-supported. They trade 4.93% above the 50-day moving average and a towering 31.83% above the 200-day moving average. The 14-day relative strength index sits at 47, a neutral reading that leaves room for further gains. Annualized volatility of 46% reflects the stock’s high-beta nature, but the recent pullback looks more like a consolidation after a 40.62% year-to-date surge. Over the past 12 months, the equity has more than doubled.
Should investors sell immediately? Or is it worth buying Siemens Energy?
While the artificial intelligence boom and the resultant data-center energy demand have been a key catalyst, the German gas-power tender adds a home-market growth leg. The law, passed by the cabinet, calls for auctions of 12 GW of capacity, with plants designed to be convertible to hydrogen later. Siemens Energy’s gas turbines are well-positioned to capture a share of that procurement, complementing its strong grid-infrastructure business — a beneficiary of the broader electrification and network buildout.
The main overhang remains the wind turbine subsidiary Siemens Gamesa, which is still working through operational issues and margin pressures. Management expects group margins of 10% to 12% before special items for the full year, with the wind division continuing to weigh on profitability.
The next key milestone is August 5, when Siemens Energy reports fiscal third-quarter results. Investors will focus on order intake and margin developments, particularly at Gamesa. Until then, the tug-of-war between a rich valuation and a strengthening earnings profile is likely to keep the stock in play.
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