Why Shares in TPI Composites Gained Ground This Week
Shares in composite wind blade manufacturer TPI Composites (NASDAQ: TPIC) rose 10.9% in the week to Thursday noontime. The move needs to be put in the context of recent events, not least of which is Siemens Energy's announcement that it was withdrawing its full-year guidance due to increased failure rates of wind turbine components at its wind power business, Siemens Gamesa. Management is conducting an extended review to estimate the potential financial impact of the quality issues, which are believed to center on bearings and rotor blades.
Since the announcement, Siemens Energy's stock is down 32.5%, and despite the rise over the last week, TPI Composites is down 6% over the same time frame. The latter's stock fell in sympathy with the troubles at Siemens Energy, but both rose this week as investors started to digest the newsflow properly.
Suppliers are believed to be a part of the review. That's a concern for TPI Composite shareholders because Siemens Gamesa contributed 10% of its revenue as recently as 2020.
Source Fool.com
Siemens AG Stock
Currently there is a rather positive sentiment for Siemens AG with 5 Buy predictions and 0 Sell predictions.
With a target price of 193 € there is a slightly positive potential of 14.49% for Siemens AG compared to the current price of 168.58 €.
