Siemens Energy hits record high as Morgan Stanley boosts outlook

Shares in Siemens Energy ENR1n.DE are up around 3% at an all-time high after Morgan Stanley raised its target price over an improved mid-term outlook

The broker expects higher EBITDA margin for gas and grid businesses in 2026 and 2027 and a 2028 EBITDA 20-44% ahead of current consensus thanks to a positive pricing trend and a read-across from peer GE Vernova GEV.N

The broker says the current consensus is underestimating the price contribution to new equipment revenues from gas and the grid backlog margins

Slot reservations for gas "will be in focus", as the co reported 58 GW including backlog as of June, signalling sustained demand for gas turbines

It also sees that the co's shares are trading at a 9.7 times the expected EV/EBITDA for 2028, at a 20% discount to the European cap goods sector and below peers

Including Monday's rise, the stock has gained 119.43% YTD.