Siemens Energy Secures $2.6B Oman Order Amid Pushback to Barclays' Underweight Call
Published on 07/09/2026 at 10:07 | Redaktion boerse-global.de
The narrative around Siemens Energy is splitting in two. On one side sits Barclays, which has issued a rare "Underweight" rating on the stock, warning that the cycle for gas turbines is cresting. On the other stand the company’s own latest moves: a billion-euro buyback, a credit-rating upgrade from S&P, and a freshly signed megadeal from Oman worth almost 2.6 gigawatts of turbine capacity. Investors are left to decide which story will prevail.
Barclays analyst Vlad Sergievskii cut his recommendation from "Equal Weight" to "Underweight" on July 7, while raising his price target from €110 to €130 — still well below the current share price. His central argument is that Siemens Energy’s gas-turbine business is nearing a cyclical peak, with free cash flow expected to hit a record of around €7.62 billion in fiscal 2026 before normalizing. The warning comes despite the fact that Siemens Energy booked orders for over 50 gigawatts in the past six months, a pace that surpasses average global demand in prior years.
That order momentum is precisely what the Oman contract underscores. Siemens Energy will supply gas and steam turbines, along with generators, for two power-plant projects in Misfah and Duqm. The turbines are designed for hydrogen co-firing, supporting Oman’s decarbonisation targets. Crucially, the deal also includes long-term service agreements, which bolster the recurring revenue stream — a factor investors closely watch when assessing the stock’s valuation.
Should investors sell immediately? Or is it worth buying Siemens Energy?
The bullish camp has other ammunition. S&P Global Ratings recently lifted Siemens Energy’s credit rating to "BBB+" with a stable outlook, citing improving profitability and the expectation that the troubled wind-turbine subsidiary Siemens Gamesa will break even this fiscal year. Meanwhile, the company is executing the second tranche of a share buyback program, with up to €1 billion in repurchases planned through September 2026. The broader roadmap targets total buybacks of up to €6 billion by the end of fiscal 2028.
The stock has felt the pressure from the Barclays downgrade, slipping about 6.7% over the past week to trade around €153.50. That still leaves it with a year-to-date gain of 25%, though it stands well off its 52-week high of €195.54. The relative strength index sits at 43.2, indicating neutral territory with no clear overbought or oversold signal. Chart watchers note a comfortable 9.18% cushion above the 200-day moving average, and a key support level at €150.
Operationally, the company’s recent quarterly figures add weight to the optimists’ case. Revenue in the latest quarter rose to €10.29 billion, driven by robust demand in grid infrastructure and gas services. Yet the real test arrives on August 5, when Siemens Energy publishes its full third-quarter report. Management will need to demonstrate that the massive order backlog is translating into the promised cash flow and margin expansion — and that the gas-turbine cycle still has room to run before any downturn materialises.
Until then, the quiet period keeps management from commenting on market-moving topics. The Omani order and the buyback program offer tangible rebuttals to the bearish thesis, but the balance sheet and the forward guidance will ultimately tip the scales. For now, Siemens Energy remains a battleground between a cautious bank and a company that keeps on booking business.
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Siemens Energy Stock: New Analysis - 9 July
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