Industrials

Report by MYST Advisors

The stock was pitched as a long idea at MYST’s latest Industrials Idea Forum, with prior events generating +11.4%, +10.4% and +9.5% average alpha. The presenter argued ENR’s recent underperformance vs. GE Vernova reflects macro-related fears among European investors, not fundamentals, leaving a valuation gap set to close. Multiple catalysts were highlighted, including “super cycles” in Gas Services and Grid Technologies and a profitability inflection in Siemens Gamesa expected in 3Q26. Street estimates are too low, with additional upside from potential changes to the Siemens AG trademark licensing fee and an end to the war in Ukraine. With strong backlog visibility and a clean balance sheet, the presenter has a TP of €225, offering 35% upside.

Industrials

Report by Starling Advisors

Massive overreaction as the share price plunges nearly 40% following a profit warning in the Siemens Gamesa division - the drop erased €7bn in ENR’s market value vs. restructuring costs estimated at ~€1bn. While Alex Dwek thinks it probably means break-even for SGRE is delayed by a year or so, the trend towards cleaner energy is accelerating and ENR is entering a new phase of growth with a good-quality record-high backlog in Gas Services, Grid Technology, and Transformation of Industry, which should convert into high revenue growth, margin expansion and profitability. On Aug 7th management will provide Q3 results and give more visibility on costs, which should act as a catalyst to restore credibility. TP €24.00 (60% upside).

Technical Analysis

Report by Messels

Recycling and Renewable Energy stocks such as Umicore, Vestas Wind and Siemens Gamesa are rallying from medium term support. Selective Seafood and Tobacco stocks remain defensive including SalMar, Mowi and Scandinavian Tobacco. Banks are generally rallying in ranges; favours CaixaBank and Sabadell which have already broken out and extend relative bases.

Industrials have broken uptrends and are now losing relative momentum such as Schneider, Atlas Copco and Alfa Laval. Luxury Goods renew their 4-month price and relative tops including Pandora, LVMH, Dior and Hermes. IT Hardware and Semiconductors renew their 5-month price and relative tops; SeSa, BE Semiconductor, Infineon and Nordic Semiconductor are highlighted.