Jefferies ups Siemens Energy to 'buy' on 'underestimated' margin potential

** Jefferies upgrades Siemens Energy ENR to "buy" from "hold", citing the German technology company's underestimated margin potential in the light of the AI boom

** The brokerage sees significant demand for the company's solutions, noting load growth in the U.S. driven by AI data centres and the need for major grid infrastructure investments

** The broker notes an attractive valuation, adding the firm is set for the second-fastest earnings growth in the electrification sector, trailing only peer GE Vernova GEV

** Jefferies says that at the upcoming capital markets day, it expects new mid-term targets and a clearer framework for shareholder returns

** Shares in Siemens Energy rise 4.5%