Siemens Energy AG shares fell more than 5% on Tuesday.
The stock became the worst performer on the German DAX index.
Barclays downgraded the company to Underweight from Equal Weight.
The bank raised its price target to €130 from €110.
Analysts warned the current valuation assumes an unsustainable gas turbine supercycle.
Barclays expects peak order intake, cash flow, and supply-demand tightness to converge in 2026.
The firm believes the market is pricing these peak conditions as permanent.