Siemens Energy holds a potential likelihood of 20%.
Siemens Energy's Share Value Has More Than Doubled in the Last Year.
Siemens Energy's share price has earned a spot among the top performers in the DAX, increasing by around 190% over the past twelve months. This growth was further fueled by a settlement with the U.S. Department of Justice regarding bribery allegations involving a subsidiary. On October 1, 2024, the share price hit an annual peak of €34.64.
As analysts at Deutsche Bank anticipate Siemens Energy meeting its annual targets, they continue to endorse a buy recommendation, raising their price forecast from €31 to €38.
Investment Proposal
Investors seeking a substantial investment in Siemens Energy, which remains somewhat undervalued, and looking to diminish the risk associated with stock ownership while aiming for strong returns may consider purchasing a capital-protected bonus certificate with a high safety net.
Instead of purchasing shares directly, bonus certificates provide investors with the opportunity to generate double-digit percentage returns annually, even in the event of a price stagnation or decrease.
Operation
If Siemens Energy's share price never falls below or touches the €20 mark by the certificate's maturity date, the certificate will be redeemed at a bonus level of €40.50 on December 30, 2025.
Crucial Information
The DZ Bank capital-protected bonus certificate (ISIN: DE000DQ8FV21) on Siemens Energy has a bonus level and a cap of €40.50. The cap determines the maximum possible redemption amount. The active barrier is €20, and the certificate is available for €33.65, with Siemens Energy's share price at €34.40.
Profit Possibilities
Purchasing the certificate at €33.65 offers a potential return of 20.36% (an annual return of 17%) over a period of 14 months, assuming the share price does not decrease by 41.86% to €20 or below.
Risks
If Siemens Energy's share price reaches the €20 barrier and remains below the cap by the certificate's maturity date, the certificate will be redeemed at the closing share price, limited by the cap level. If this is less than the purchase price of €33.65, the investment will result in a loss.
This article provides information only and does not represent a recommendation to buy or sell Siemens Energy shares or other associated investments. The accuracy of the data is not guaranteed.
Investors interested in diversifying their portfolio could consider other equity instruments related to Siemens Energy, such as bonds or preferred stock, to mitigate risks associated with stock ownership. Despite the high returns from purchasing a capital-protected bonus certificate, it's essential to consider the potential losses if Siemens Energy's share price falls below the active barrier.
Rather than solely relying on Siemens Energy shares to achieve investment goals, combining different equity instruments like other equity instruments related to Siemens Energy can offer a more balanced and potentially less risky investment strategy.
