Siemens Energy boss says there can be no energy transition without China
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2024
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Source: reuters
- Europe's Energy Sector Reliance on China: CEO of Siemens Energy highlights the heavy reliance of Europe's energy sector on Chinese supplies, particularly in wind turbine manufacturing.
- Global Trade Tensions with China: The U.S. and EU are increasing tariffs on Chinese products like electric vehicles to protect local industries from unfair competition.
- EU Investigation on Chinese Wind Turbine Makers: The EU is investigating whether Chinese wind turbine makers benefit from subsidies that undercut Western companies like Vestas, Nordex, and GE Vernova.
- Challenges in Diversifying Supply Chains: Wind turbine production heavily depends on Chinese materials like rare earths and permanent magnets, making it difficult for the sector to diversify sources without significantly higher costs.
- Siemens Energy's Strategic Changes: Siemens Energy announced changes in its wind turbine division, including reducing market competition in regions like Latin America and Africa due to pressure from cheaper Chinese competitors.
Analyst Views on GEV
Wall Street analysts forecast GEV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GEV is 769.15 USD with a low forecast of 475.00 USD and a high forecast of 1000.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
16 Buy
6 Hold
1 Sell
Moderate Buy
Current: 661.670
Low
475.00
Averages
769.15
High
1000.00
Current: 661.670
Low
475.00
Averages
769.15
High
1000.00
About GEV
GE Vernova Inc. is a purpose-built global energy company that includes Power, Wind, and Electrification segments and is supported by its accelerator businesses. It designs, manufactures, delivers, and services technologies to create a sustainable electric power system, enabling electrification and decarbonization. Power segment includes the design, manufacture, and servicing of gas, nuclear, hydro, and steam technologies, providing a critical foundation of dispatchable, flexible, stable, and reliable power. Wind segment includes its wind generation technologies, inclusive of onshore and offshore wind turbines and blades. Electrification segment includes grid solutions, power conversion and storage, and electrification software technologies required for the transmission, distribution, conversion, storage, and orchestration of electricity from point of generation to point of consumption. Its accelerator business includes advanced research, consulting services and financial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
