Siemens Gamesa, buying opportunity?
Siemens-Gamesa is getting rid of the red lantern of the Ibex for the moment, by the hair, trying to remove the negative scepter from Solaria, but only because it finally did not rise more in the generalized recovery session yesterday, after showing the market fear of the Delta variant and its progression at the beginning of the week.
In fact, Siemens Gamesa has been widely penalized after indicating that it will not reach the estimated benefits, something to which, unfortunately, we are getting used to with the old or new directive, because it is the fourth time it has done so. In this case the raw materials and their price increases and the increase in costs in the 5.X platform to improve onshore, the onshore wind, which was losing steam before the navy.
This is how he recognized on the 15th that will not meet profitability targets for 2023 And that it could be delayed to 2024, it depends on the evolution of the business in this specific area, because its estimates of income for two years ahead remain unchanged.
The effect, devastating in the value with losses of 14.42, together with those that exceeded 5% in two previous sessions and the additional 2% to the decline of the next day, almost 21.5% of decreases in only 4 sessions. It is already recovering, although progress is less than 4%. Thus after yielding more than 15% in the last month, the annual negative background already exceeds 30%.
Siemens Gamesa stock price
All of this led analysts to drastically lower expectations: Income 4, the most negative left at 17.52 euros its target price with a recommendation to underweight the security and already well below its market price. Bankinter with a cut of almost 8 euros, left it at 20.8 its PO and advice to sell against neutral.
Also among foreign firms: JP Morgan down to 29 from PO’s 33, as did Citigroup from 41 euros, while Deutsche Bank lowered it to 25 from the previous 29 euros per title.
But this very fact leaves, with Siemens Gamesa’s correction on the table, a inescapable and important potential over value: In the case of the 29 euros of JPMorgan and Citigroup reaches 28% not negligible and possibly to consider. And if all this is not enough, it comes Fitch and, on account of your profit warning downgrades its rating outlook to negative.
According to María Mira, fundamental analyst of Investment Strategies “in an analysis of multiples on the estimation of results for the close of fiscal year 21, and with an estimated EPS of € 0.21 / share after the announced downward revision by the company, the security is trading with adjusted ratios. The market discounts a PER that is around 90v, higher than the Ibex 35 average. If we take into account that the CBA forecast is + 121.8% ”.
In addition, “the PEG ratio would still have a growth margin (0.74v). It is not cheap due to the ratio of sales or cash flow (PSV 1.74v and PCF 43.6v). The EV / EBITDA multiple of 23.4v, adjusted and by book value the market pays more than 3.8v. On the positive side, a strong balance sheet with good leverage and consistency ratios and the ability to increase debt and face new investments ”.
Siemens Gamesa fundamentals
Following the downward revision in the forecast of results for the close of the current fiscal year (until October 2021), we revised our recommendation to neutral with a negative outlook, based on a fundamental valuation and with a view to the medium term. In the longer term the outlook improves. On July 30, it will present accounts corresponding to its 3Q21.
For Luis Francisco Ruiz, director of Investment Strategies analysis, Siemens Gamesa is placed “In downtrend. The price series shows significant decreasing highs / lows, the medium and long-term simple moving averages have crossed downward, volatility is rebounding strongly and volume (except for the last session due to the crash) has gone contracting ”.
And the Strategies expert also points out that “we are facing a bearish title and pullbacks or returns to resistance, 24,21, represent opportunities to undo open positions ”.
Siemens Gamesa on daily chart with average amplitude range in percentage, MACD oscillator and trading volume
Siemens Gamesa technical value analysis
The Investment Strategies technical indicators show a Siemens Gamesa, in rebound mode, with a slightly downward note of 4 points out of 10 totals. Among the best, the medium-term uptrend, the positive fast total moment and the long-term volume that is increasing for the value.
On the other side, among the worst, the long-term trend, the total slow moment that is negative, the medium-term volume that is decreasing and the range of amplitude, the volatility of the value in the medium and long term, in its two aspects, increasing in Siemens Gamesa.
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