Siemens Energy Advances as Citi Flags Rising Power Needs and JPMorgan Backs 245-Euro Target

Siemens Energy shares rose as Citi and JPMorgan backed AI-driven power demand; JPMorgan kept Overweight with a EUR 245 target.

Siemens Energy shares moved higher on Wednesday, with the DAX-listed power technology group catching a sector-wide rebound as analyst reassurance helped steady a stock that had been knocked around by artificial-intelligence jitters earlier in the week.

The equity was up 2.2% at EUR 135.72 in one reading of the session, while a separate snapshot put the gain at 3.2% to EUR 137.12 — a reflection of the intraday swings that have characterized recent trading. No company-specific news landed during the day.

Citi Makes the Case for More Compute — and More Power

The recovery drew support from Citigroup, which argued that additional AI safety measures will require computationally intensive processes. Far from throttling demand, that dynamic should push requirements for computing power — and the energy infrastructure needed to feed it — higher rather than lower.

The reasoning lands after a bruising start to the week. On Monday the stock closed down 6.27%, pressured both by debate over a potentially slower pace of AI adoption and by news about the company's ownership structure.

According to media reports, former parent Siemens AG has trimmed its holding further, with the stake now down to 14.96%. The 2023/24 annual report had still shown 17.1%.

JPMorgan Keeps Overweight Rating, Sees Upper End of Guidance

JPMorgan struck a similarly constructive tone, reiterating its "Overweight" rating and leaving its price target unchanged at EUR 245. On that basis, the bank expects the company to reach the upper end of its own annual profit range.

Management had already sounded confident when presenting earlier results. Global demand for energy infrastructure underpins the gas turbine and services business, while the executive team pushes ahead with the turnaround of the wind power unit.

Record Order Book Anchors the Guidance

That fundamental backdrop was on display in the third quarter of fiscal 2026, when the company booked EUR 17.9 billion in incoming orders. The total order backlog climbed to a record EUR 162 billion.

Siemens Gamesa marked a notable milestone within that figure. After a prolonged loss-making stretch, the wind subsidiary posted a positive quarterly result for the first time. For the full year, management is targeting break-even in the division.

Group-level ambitions remain intact as well. For fiscal 2026, the team around CEO Christian Bruch is aiming for comparable revenue growth of 14% to 16% and a margin before special items of 10% to 12%.

Omterra Spinoff Takes Shape

Roughly two weeks ago, management also set the course for a structural overhaul. The Transformation of Industry division, which employs around 17,000 people, is to be carved out as a standalone company under the proposed name Omterra.

The plan calls for deconsolidation from the group accounts, with Siemens Energy retaining a significant minority stake. A capital markets transaction or the introduction of outside investors are both on the table as routes to independence. For former parent Siemens AG, which now holds only a small minority position, no operational changes arise from the move.

Fed Decision in Focus

For investors, the operational delivery of the annual targets remains the decisive factor. Attention on Wednesday evening turns to the US Federal Reserve's upcoming interest rate decision.