Siemens Energy Caught Between Musk's Turbine Ambitions and Omterra's Slow Unraveling
Published on 09/01/2026 at 19:50 | Editorial boerse-global.de
The German power-equipment giant is navigating a peculiar paradox. Its stock has shed roughly 28 percent from the 195.38-euro peak reached earlier this year, yet the analyst community remains almost uniformly bullish, with price targets ranging from 200 to 245 euros. The current share price of around 141.14 euros sits far below even the most conservative of those projections, creating a disconnect that says less about the company's fundamentals and more about two distinct sources of near-term anxiety.
The first jolt came from an unlikely corner: Elon Musk. A media report suggesting SpaceX might begin manufacturing its own turbine blades sent Siemens Energy shares sliding at the start of the week, dragging suppliers like Howmet Aerospace and GE Vernova down with it. Musk himself walked back the implications, noting that natural gas would remain a complement to solar power for years to come. But the prospect of in-house turbine component production—which could shave up to 18 months off gas turbine commissioning timelines—was enough to rattle investors. The stock now trades about 7.8 percent below its level from a week ago, with the relative strength index at 37, signaling oversold conditions. The 50-day moving average of 153.73 euros sits well above the current price.
Not everyone is convinced the SpaceX threat warrants such a reaction. Bloomberg Intelligence analyst Omid Vaziri points out that Siemens Energy has already been expanding its internal capacity for ceramic cores and casting processes, which should ease near-term supply bottlenecks and support the high-margin service business beyond 2030. Jefferies analyst Lucas Ferhani sees the SpaceX move as evidence of persistently strong electricity demand rather than a competitive threat, noting that any production shift would take years and is unlikely to affect prices in the near term. Jefferies reaffirmed its "Buy" rating with a 215-euro price target.
Should investors sell immediately? Or is it worth buying Siemens Energy?
The second overhang is the company's own restructuring. On August 25, Siemens Energy initiated the legal and operational separation of its Transformation of Industry division, which employs roughly 17,000 people. The following day, the company confirmed the unit would operate under the brand name Omterra, with Siemens Energy retaining a significant minority stake while exploring options ranging from external investors to a potential capital markets transaction.
The strategic logic has won over the analyst community. Deutsche Bank Research confirmed its "Buy" rating on August 26 with a 210-euro target, with analyst Gael de-Bray explicitly citing the separation as the rationale. RBC Capital Markets maintained its "Outperform" stance that same day, though it trimmed its price target from 210 to 200 euros. Bernstein Research had already reaffirmed its "Outperform" rating with a 210-euro target on August 20, before the official announcement. JPMorgan weighed in last Tuesday with an "Overweight" rating and an unchanged 245-euro target.
The deconsolidation is designed to give the industrial unit greater entrepreneurial flexibility while allowing the core company to sharpen its focus on remaining business areas. But the market's skepticism is understandable: details on valuation, investor structure, and timing remain unresolved. The stock has continued to drift lower since Monday's close of 142.66 euros, suggesting that investors are waiting for more concrete information before rewarding the strategic vision.
Despite the recent turbulence, the stock remains up 17 percent since the start of the year. The gap between analyst enthusiasm and market hesitation may narrow as the Omterra separation takes clearer shape—and as the SpaceX threat recedes into the realm of long-term speculation rather than imminent competition. For now, Siemens Energy finds itself in the unusual position of having its fundamental story broadly endorsed while its share price tells a more cautious tale.
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