This post was originally published on this site
Investing.com — Shares in Siemens Energy AG (ETR:ENR1n) gained on Monday after analysts at HSBC upgraded their rating of the German renewable energy company to buy from hold, citing the group’s plans to take greater control over its Siemens Gamesa (OTC:GCTAY) unit and hopes for the broader wind turbine industry.
Earlier this month, Siemens Energy unveiled a €1.26 billion (€1 = $1.0763) share sale to help fund its purchase of the remaining shares in Spanish-German wind turbine maker Gamesa that it does not already own. That bid, worth a total of €4.05B, was first launched in November as Siemens Energy looked to resolve problems at Gamesa following a series of profit warnings.
The HSBC analysts backed Siemens Energy’s full takeover of Gamesa, citing confidence in the ability of the group’s management team to fix lingering issues at the division.
They added that they are optimistic about the long-term prospects for wind turbine businesses, noting in particular that a post-pandemic drop in logistics and input costs should boost future profitability.
