Securities profile Call on Siemens Energy (JP Morgan Structured Products BV) WKN JV10R8 ISIN DE000JV10R86 Chart Message Share price comparison

Lauda-Königshofen (www.optionsscheinecheck.de) – In his current publication, Harald Zwick from “boerse-daily.de” presents a call warrant (ISIN DE000JV10R86 / WKN JV10R8) from JP Morgan on the shares of Siemens Energy (ISIN DE000ENER6Y0 / WKN ENER6Y).

The Siemens Energy share price has increased more than sevenfold since its low. Despite the extraordinary price increase, analysts see further price potential of 40 percent. The share price is currently testing its all-time high of 49.94 euros and will enter new territory if this mark is overcome.

By presenting the first annual profit in the company’s history of Siemens Energy (ENR) and an optimistic outlook for the future, ENR regularly sparked a real price rally on the stock market. Since the end of October 2023, the price has increased more than sevenfold. In the 2023/24 financial year, the group, which was supported by state counter-guarantees, generated a profit of 1.3 billion euros after recording a loss of 4.6 billion euros last year.

Bank Berenberg raised its forecast for ENR by Price target doubled from 35 to 70 euros and at the same time kept my recommendation of “buy”. Although the price has risen by 677 percent, there is a possibility that the energy technology company’s shares could increase by another 50 percent.

According to market participants, ENR has achieved a turnaround. Since the absolute low on October 26, 2023 at 6.40 euros, the price has increased by around 677 percent. However, from May 15, 2024, the bulls took a break, which was clearly manifested in a sideways movement. However, from September 9th onwards, the price moved upwards again and formed an upward sequence that was still intact. The level around the all-time high of January 12, 2021 at 34.48 euros was overcome.

According to CEO Christian Bruch, the market environment is extremely positive. The company is benefiting from electricity growth, although the losses at the Siemens Gamesa wind turbine have at least become somewhat smaller. The paper is currently testing the resistance zone at the all-time high level of 49.94 euros. If this level is broken, the price will be back in uncharted territory and could establish new all-time highs. The paper still has an unleveraged potential of around 40 percent on the 70.00 euro price target set by the analysis company Berenberg. Given the long-term benefits that ENR will derive from the restructuring of the power grid, it is expected that the share price will also find additional impetus due to this factor.

Risk-taking investors who would expect Siemens Energy shares to rise to 57.01 euros could benefit disproportionately with the call warrant with an omega of 3.69. Assuming a constant high implied volatility of 45% and the target of 57.01 euros (1.09 euros for the warrant), a return of around 54% can be achieved by January 2nd, 2025. If the price of the underlying asset falls to 44.99 euros during this period, this would result in a loss of around 46% for the warrant. The risk-reward ratio is therefore 1.15 to 1 if a stop-loss order is placed at 44.99 euros (0.38 euros for the note). (11/29/2024/oc/a/d)

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