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SIEMENS GAMESA: LACKING UPSIDE, EVEN IN AN OPTIMISTIC SCENARIO (ANÁLISIS BANCO SABADELL)

Lacking upside, even assuming an optimistic scenario. We maintain our SELL recommendation.
In light of the messages included in its 2020-23 Strategic Plan, on 27 Aug we raised our T.P. to € 17.95/sh. due mainly to the higher growth rates expected in the offshore and O&M segments in the long-term (CAGR'19-24e of +6.4% in sales vs. +2.8% previously and vs. +4.2% consensus and +3% g vs. +2% previously), bringing ourselves to levels in line with the level of return estimated by the company in the long-term thanks to the higher weight of offshore and O&M activities in its sales mix. However, we continue to see some uncertainties (delivery risk) following the recent profit warnings, the impact from Covid-19 and the restructuring process in India. Thus, after increasing by +32% thus far this year (+59% vs. IBEX), the stock's upside potential remains negative (-13%), and therefore, we maintain our SELL recommendation.