Visibility is needed. That is what many of the experts think when talking about Siemens Gamesa, and that is why the ‘Capital Market Day 2020’ that the company celebrates this August 27 and in which he will offer clues about his present and future. If the new management team leaves investors and analysts satisfied, it is very likely that the energy company will overtake Cellnex and become the leader of the Ibex in the year. At the moment, they are almost at par. The first rises 46% in 2020 while the second is revalued by 50%.
After to remove its CEO, Markus Tacke, and to anticipate losses for 2020 (the first since 2017) in mid-June, there were results of the third fiscal quarter -at the end of July- impacted by the Covid and that reflected some red numbers of 466 million euros.
Analysts have been saying for months that we must wait for this ‘Investors Day’ to clear up unknowns. “We will have to wait to have visibility on the situation of the portfolio, the project of the new management team, the restructuring and its objectives for normalized margins in the medium term“, said Bankinter experts after knowing the latest results of the company. Something similar said those of Renta 4 that, for the moment,” and due to the uncertainty about the depth of the current crisis “, they advise to ‘underweight’ the title The ‘orange bank’, for its part, has a ‘sell’ recommendation.
However, it is a fact that Siemens Gamesa has experienced a very strong rebound in recent weeks (up 60% since June 18, when he announced those changes in the board) and it is also a fact that the perception towards it has changed precisely before the arrival of a new team, with Andreas Nauen at the helm. In recent times, such important firms as JP Morgan or Citigroup have improved their valuations of the company before the landing of new managers, and already they speak of a “turning point” or a “change of course”, something that should be confirmed this next Thursday so that it continues with its advances in the stock market.
JP Morgan hopes that this meeting will a new strategic plan and more details on the restructuring of the onshore business. “We think it is an opportunity for the new management to increase its credibility after the failures of the previous management team,” says the US bank. The experts, in general, highlight the doubts about the visibility of the ‘onshore’ business, which have led to three reviews in the year. India continues to account for 19% of the revenues of this business.
At the end of July – just after knowing its results – Deutsche Bank also raised its price target on the company (up to 18 euros from the previous 16 euros) precisely because of the expectations of the new directive in a report entitled ‘A new management team to drive the change process’.
From a technical point of view, Siemens Gamesa has exceeded its 2017 highs of 20.80 euros and now has a clear path, in theory, towards all-time highs, at 27 euros. “Of course, it is a medium-term objective that can be achieved, with their typical scares along the way. With everything, It’s time to hold, not open long now. To do so is to arrive very late to the market “, indicate the technical analysts of Bolsamanía.