European Event-Driven Analyst

Jesus Rodriguez Aguilar

Jesús is an Insight Provider (Event-driven) on the Smartkarma network, where he looks across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations. He has served as Economic and Business Advisor at the Spanish Congress in Madrid. Prior to that, he has worked in the City of London: as a Credit Analyst at Bloomberg; Event-driven associate at former boutique European Research; and doubled as Special Situations and Equity-linked VP (convertible bonds) at Merrill Lynch. Jesús has an MBA from the London Business School, a BA (Hons.) degree in Economics from the Complutense University in Madrid, and a BA (Hons.) in Law from U.N.E.D., also in Madrid.

Equity Bottom-Up

<ul>
<li>Siemens Energy plans to bring back the wind business (Siemens Gamesa Renewable Energy) to profitability by fixing quality issues in onshore and driving ramp-up in offshore. Break-even is expected in 2006.</li>
<li>The restructuring process continues after four years of losses, €2 billion net loss is expected for FY 2024. The top Spanish financials institution have turned off the credit tap recently.</li>
<li>The visibility on the end of wind losses remains very limited with execution risk, so I would apply 0.9x P/BV and be short the stock, TP €9.76.</li>
</ul>


Siemens Energy plans to bring back the wind business (Siemens Gamesa Renewable Energy) to profitability by fixing quality issues in onshore and driving ramp-up in offshore. Break-even is expected in 2006.
The restructuring process continues after four years of losses, €2 billion net loss is expected for FY 2024. The top Spanish financials institution have turned off the credit tap recently.
The visibility on the end of wind losses remains very limited with execution risk, so I would apply 0.9x P/BV and be short the stock, TP €9.76.


Siemens Energy AG

Siemens Gamesa Still Poses High Risks