Citi‘s Most Read – Industrial Tech & Mobility

Research evidence excerpt

Citi‘s Most Read – Industrial Tech & Mobility

divisions in-line with VA consensus, would imply group orders of EUR17.7bn, 4%

above consensus. 2) Siemens Energy reiterated its expectation of 110-120 GW gas

turbine annual demand in the coming years, and sounded relaxed about industry

supply/demand. 3) No large orders in Grid or SGRE highlighted. 4) IR went beyond

existing commentary around a good Gas pipeline for 2027 to call out a likely good

start to FY27. Given the shares' recent weakness on concerns around peaking Gas

orders in FY26/softening supply/demand, we would expect some relief for the

shares.

Neutral | Target price €185.00

Vivek Midha, CFA

INNIO Group (INIO.O) - Compelling Onsite Data Center Power Play, But Growth

Priced in Stock; Initiate INIO Neutral

We think INIO’s well-established position as a public “pure-play” reciprocating

engine manufacturer supports a significant multi-year earnings growth

opportunity, driven primarily by the robust data center infrastructure build-out

cycle that’s creating a supply deficit relative to demand levels. We think INIO’s

planned capacity expansion plans (~3x mfg. capacity from 2025 levels by 2030)

should unlock meaningful Equipment revenue at higher margin (supported by

favorable pricing in backlog and improving operational leverage) while also

establishing a substantial L-T services opportunity 2030+. That said, given an

elevated valuation multiple that we think largely reflects expected favorable

demand trends and improving profitability, we view near-term risk/reward as

relatively balanced. We initiate coverage with a Neutral rating and a $42 target

price based on 30x our 2027 adj. EBITDA estimate.

Neutral | Target price US$42.00

Andrew Kaplowitz

INIO’s Capacity Expansion Plan