Siemens Energy shares rebounded on Monday after last week's drastic plunge. In early XETRA trading, they rose temporarily by 15 percent and finally closed 8.57 percent higher at 8.13 euros.

The trigger for the price drop was the company's announcement of talks with the federal government about guarantees for large orders. The negotiations with the Federal Ministry of Economics continued over the weekend, as well as with the former parent company Siemens, which still holds 25.1 percent of the shares. According to insider sources, however, Siemens is still hesitant to participate in the guarantees and refuses to comment on this.

In an interview with "Welt am Sonntag," Siemens Energy Chairman of the Supervisory Board Joe Kaeser tried to alleviate concerns and emphasized that the talks were about guarantees, not state aid. On Monday, Goldman Sachs analyst Ajay Patel confirmed his "buy" recommendation for the stock with a high potential return, however, he lowered his price target by around 20 percent to 20.50 euros. Patel explained that the need for guarantees for long-term projects explains Siemens Energy's move and the company is currently evaluating various options to strengthen its balance sheet.

Volker Stoll, analyst at Landesbank Baden-Württemberg, believes in the potential of the energy technology corporation and upgrades the stock from "hold" to "buy". Even though he also lowered his price target by more than a third, he is confident about the company's future. In his study from Friday, Stoll writes that traditional energy technology offers solid growth prospects within the energy transition and could enable a return to the profit zone by 2024.

Furthermore, plans by the European Commission to give greater consideration to the local value creation of wind turbine manufacturers in tenders could lead to a long-term improvement in earnings conditions for European suppliers, and thus also for Siemens Energy.

Despite the current turbulence, the Siemens Energy stock remains an interesting option for investors. Since the low last Thursday, it has recovered by a quarter, but remains the weakest among DAX values with a decrease of 55 percent. However, management's concern about the company's continued presence in the DAX is unfounded, according to index expert Luca Thorißen from the investment bank Stifel Europe.

For this, the stock would have to fall significantly further. The regular index review in March is still several months away. Until then, it remains to be seen how the negotiations with the federal government and shareholders will develop and what measures the company will take to strengthen its balance sheet.