Siemens Energy shares continued to rise on the Frankfurt Stock Exchange on Friday, buoyed by a recommendation upgrade from Deutsche Bank.

The intermediary said it had upgraded its rating on the stock to 'buy' from 'hold', with a target price raised from €14 to €23.

In its research note, Deutsche Bank points out that GE Vernova, Siemens Energy's American competitor which recently went public, is valued much higher than its German counterpart.

In its view, this situation will create a benchmark for the group at a time when it is striving to resolve the quality problems of its wind turbines.

The analyst adds that a possible upward revision of its free cash flow (FCF) targets and a forthcoming return to the market of its 4X and 5X turbines also point to a more favorable risk/return profile.

In the longer term, Deutsche Bank believes that renewable energies should benefit from rising electricity demand, particularly in the US where the AI explosion requires the powering of data centers.

At around 2.30pm, the stock was up 1%, recording one of the best performances of the day on the DAX index. It now boasts a year-to-date gain of over 62%.

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