06:58 AM EDT, 08/25/2026 (MT Newswires) -- BofA Global Research maintained its investment opinion on Siemens Energy (ENR.F), noting expectations that the German energy technology group will issue above-consensus midterm target upgrades in November. "We have spoken to >60 investors since publishing our recent deep-dive, and noticed a significant shift in tone. Many EU/Asia hedge funds have been cautious on the stock since May ('peak' orders, Gas overcapacity, upside elsewhere), but this has now shifted due to supportive datapoints from Q3 results, an attractive valuation multiple, and the new mid-term targets coming closer (11th Nov). EU long only and US hedge fund feedback remains positive. We believe this creates an attractive set-up: compelling [valuation] (14x 2027E EV/EBITA), strong catalysts to drive large upward earnings revisions (Siemens Energy, Hitachi Energy and peer mid-term target updates) and potential incremental HF buyers," analysts said Tuesday. The research firm noted that Siemens Energy's fiscal third-quarter data points to "inevitable" profit upgrades, anchored by a rise in gas order pricing to 443 million euros per gigawatt. BofA added that Siemens Energy's Grid business hit 20% margins in the quarter on 14.5 billion euros in annualized sales, with even stronger pricing benefits expected as backlog execution continues. "The most common question was not on our above-consensus [estimates] themselves (FY30 adj EBITA +29% vs cons) but rather whether [management] will fully reflect the upside in their new targets. This is understandable given mgmt [conservatism], but we believe ENR's FY28 targets last Nov illustrated a willingness to give targets above buy/sell-side consensus (& that mgmt care about the share price reaction). We also think FY27 guidance is likely to box ENR in somewhat: guiding Grid margins 21-23% in FY27 but then 'only' 23-25% in FY30 would appear extremely conservative given the pricing and [volume] growth to come. We therefore expect mgmt to guide FY30 group margins to 21-23%, above cons 19.9%," the note said. As such, BofA reiterated its buy rating and price objective of 250 euros on the stock.

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