Siemens Energy Leverages Share Buyback as Analyst Upgrade and AI-Led Orders Support Growth Story

Siemens Energy shares drop 21% from peak but buyback accelerates, UBS reiterates buy with €175 target, record €154B backlog supports growth outlook.

Siemens Energy appears to be playing both offense and defense. While its stock has pulled back roughly 21 percent from an April peak, the company is aggressively repurchasing its own shares — and one of Wall Street's top houses just reaffirmed a bullish stance.

UBS analyst Andre Kukhnin reiterated a buy rating on the stock with a price target of €175, a view he laid out in a sector note on June 16. The call dovetails with a management roadshow currently winding through Zurich, Munich, London and Copenhagen, where executives are pitching the company's strategic roadmap to investors. The stock responded in kind, climbing nearly three percent on the day to €158.58.

The buyback program, meanwhile, is picking up speed. Since launching at the start of June, Siemens Energy has scooped up roughly 933,000 own shares via the open market, with almost 700,000 of those bought in a single week. The timing is telling: the shares had recently slid to €153.94, well off their 50-day moving average of €168.94.

Record orders mask a correction

The divergence between operational momentum and stock price is stark. Siemens Energy notched a record order intake of €17.7 billion in its fiscal second quarter, with the Gas Services division posting its strongest quarterly haul ever. The order backlog has swelled to €154 billion — a scale that gives the company years of visible revenue.

Much of that firepower is coming from the insatiable energy demands of Big Tech. U.S. data centres and European power generation expansion are driving orders for gas turbines and grid equipment, and the global electricity requirement is expected to double by 2035. That structural tailwind is lengthening the growth runway well beyond current fiscal targets.

Management is betting on itself with conviction. The board has guided for up to 16 percent revenue growth in fiscal 2026 and a net profit of around €4 billion. The share buyback — now approaching one million shares — is a tangible expression of confidence in that forecast.

Technical levels and near-term catalysts

On the charts, the stock remains comfortably above its 200-day average of €137.27, a long-term support that has held. The relative strength index sits at 47.3, squarely in neutral territory — neither overbought nor oversold. Year to date, the shares have still gained nearly 29 percent.

The next major inflection point comes on August 5, when Siemens Energy reports third-quarter results. CEO Christian Bruch is then expected to deliver an updated full-year outlook and a strategy blueprint through 2030 during a November investor event. Bruch's contract runs until April 2030, signalling continuity at the top.

Investors are also watching the troubled wind turbine subsidiary Siemens Gamesa. Early improvement signs have emerged, but a full turnaround remains a work in progress. For now, the combination of heavy order books, insider buying and a supportive analyst call gives the stock a solid floor — even if the short-term price action has been choppy.