Siemens Energy Shares Increase After JP Morgan Upgrades Rating to ‘Neutral’

Shares of Siemens Energy have experienced an increase following a rating upgrade by JP Morgan from “underweight” to “neutral.”

As of 4:58 am (0858 GMT), Siemens Energy was trading 3% higher at €35.74. This change indicates a shift in investor sentiment as worries about the company’s weak balance sheet ease, thanks to stronger-than-expected order intake and strong demand in critical sectors such as gas turbines and grid technologies.

Earlier this year, JP Morgan had downgraded Siemens Energy due to concerns over potential market share losses and a fragile balance sheet, worsened by difficulties in its wind turbine division, Siemens Gamesa. However, the company has since exceeded these expectations, recording solid order intake across various segments, particularly in gas turbines, where demand has surged due to rising electricity needs in the U.S. and Europe.

The grid technology segment of Siemens Energy also played a significant role in the positive outlook, demonstrating global growth beyond Europe. Investors are increasingly concentrating on these strengths, even as challenges in the wind sector continue.

The market has largely accounted for potential negative surprises from the wind segment, suggesting that any adverse impact on the stock from this division may be limited moving forward.

JP Morgan has also updated its price target for Siemens Energy, raising it to €32.80 from €13 by December 2025, indicating greater confidence in the company’s recovery trajectory.

This upgrade aligns with the company’s performance metrics showing signs of stabilization, which reduces the need for immediate capital raises to improve the balance sheet. With strong orders and better-than-expected cash flow, the immediate risks that have previously burdened Siemens Energy’s stock appear to have diminished, warranting the upward revision in JP Morgan’s outlook.