FRANKFURT (Reuters) - Siemens Energy's troubled wind turbine division is not expected to break even before 2026, analysts at JPMorgan (NYSE:JPM) and Deutsche Bank (ETR:DBKGn) said on Wednesday, adding the unit's recovery would take longer than expected amid far-reaching problems.
Frankfurt-listed shares in the company were trading 0.79% lower at 0653 GMT, two days after the group disclosed a 2.2 billion euro ($2.41 billion) charge for Siemens Gamesa as a result of quality and ramp-up problems.
In a note titled "Gone with the wind", Deutsche Bank analyst Gael de-Bray cut the price target for Siemens Energy to 18 euros per share from 20 euros, keeping a "hold" rating. JPMorgan downgraded the stock to "neutral" from "overweight".
JPMorgan analysts that while the issues at Siemens Gamesa had been widely known they were so far driven by the onshore segment, where Siemens Energy has unveiled quality problems around rotor blades and bearings.
"However, the inflation and ramp-up issues have now started to impact the Offshore business, the crown jewel, which shows the company's bargaining power is limited despite it being the undisputed leader in offshore," they said.
Siemens Energy has said it will disclose more information about the future of Siemens Gamesa, including financial targets beyond 2023, at a capital markets day scheduled in November.
($1 = 0.9114 euros)