Remarkably, Siemens Energy shares continue to rise by nearly 30%.
Let's dive into whether Siemens Energy's stock can bounce back from the US tariff whack or if it's game over for the mega rally. Here's what you need to know about the title's future prospects.
In the throes of 2024, Siemens Energy was a ceaseless rocket among the DAX, soaring more than 300% in value. As 2025 commenced, anticipation was rife, fueled by escalating electricity demands in energy-hungry AI companies.
However, a sharp tariff blow, instigated by President Trump, plagued not just tech stocks but players like Siemens Energy as well. Although the stock recovered somewhat from the severe drop on Monday, it's backpedaling again on Wednesday, struggling to exceed the 50 euro mark.
Siemens Energy (WKN: ENER6Y) - Is the ride over for Siemens Energy, the DAX's star performer?
For the time being, investors need not fear watching the stock plummet completely. The value remains well away from the 200-day average line, currently nestled at around 41.88 euros, which often sets the long-term direction of the stock.
In response to any panicky sell-offs, investors should consider offsetting purchases. And, while doing so, there's a glimmer of hope that the energy company can not only sustain the current price level but also push it higher.
Can Siemens Energy's stock soar by almost 30%?
Goldman Sachs believes Siemens Energy's stock remains a solid investment, projecting a surge of nearly 30%, placing the target price at 63 euros. This bullish stance materialized prior to the Trump tariffs in April 2025, but the rationale penned by analyst Ajay Patel hints at long-term factors with the potential to drive the stock.
The burdensome legacy transactions, increased costs, and supply chain pressure that ravaged the firm's earnings in the past have started to dissipate. Although competition from China is still a concern, margins are gradually strengthening. Siemens Energy appears poised to lead during the subsequent financial reporting season. As investors, carefully consider abandoning ship—even with the looming threat of continued tariff restrictions.
This content incorporates material from dpa-AFX
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- The surge in Siemens Energy's stock value in 2024, exceeding 300%, indicated its prominence within the DAX.
- Despite the tariff impact, Siemens Energy's stock struggles to exceed the 50 euro mark, raising questions about its future performance.
- Goldman Sachs anticipates a potential 30% increase in Siemens Energy's stock, targeting a price of 63 euros, indicating optimism about the energy company's long-term prospects.
- Despite ongoing tariff concerns, investors may find it prudent to consider Siemens Energy's stock as a potential investment opportunity, considering the long-term factors that could drive its growth.
