Siemens Energy (XTRA:ENR) Valuation Check As Remote Operations Centers Reshape Power Plant Efficiency

Remote operations shift puts Siemens Energy (XTRA:ENR) in focus

Recent coverage of Siemens Energy’s rollout of Remote Operations Centers, built around its Omnivise software platform, has drawn attention to how the company is centralizing power plant monitoring and predictive maintenance.

See our latest analysis for Siemens Energy.

The Remote Operations Center rollout arrives after a strong run in the shares, with a 90 day share price return of 21.59% and a very large 3 year total shareholder return, so recent momentum looks firm rather than fading.

If this focus on energy technology has your attention, it could be a helpful moment to widen your research and check out aerospace and defense stocks.

So with the shares up strongly over 1 year and trading close to the €125.04 analyst price target, is Siemens Energy now fairly valued after its Remote Operations push, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 2% Overvalued

With Siemens Energy last closing at €127.55 against a narrative fair value of €125.04, the current price sits slightly above that central estimate.

The analysts have a consensus price target of €83.755 for Siemens Energy based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of €136.0, and the most bearish reporting a price target of just €37.0.

Read the complete narrative.

Curious what kind of revenue run rate, margin uplift and future P/E multiple have to line up to support that fair value? The full narrative sets out a detailed growth path, explicit profitability goals and a valuation multiple shift that together explain why the model lands where it does.

Result: Fair Value of €125.04 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, high order backlogs and energy transition demand could still fall short of expectations if grid upgrades slow or if the Siemens Gamesa turnaround takes longer than planned.

Find out about the key risks to this Siemens Energy narrative.

Build Your Own Siemens Energy Narrative

If you are not fully aligned with this view or simply prefer to weigh the numbers yourself, you can build a custom narrative in a few minutes: Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Siemens Energy.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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