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On Friday, Citi analysts reinstated coverage on Siemens AG (SIE:GR) (OTC: OTC:SIEGY (BCBA:SIEGYm)) with a positive outlook, assigning a Buy rating and setting a price target of EUR245.00. The move comes after a hiatus where the firm had suspended its rating on the company. With a market capitalization of $194.3 billion and trading below its InvestingPro Fair Value, Siemens (ETR:SIEGn) appears positioned for potential upside. The company maintains a solid financial health score of "GOOD" according to InvestingPro’s comprehensive analysis.
The Citi analyst highlighted the expansion of Siemens’ software portfolio as a critical factor in the company’s potential to lead in the integration of agentic and physical AI within industrial applications. Despite acknowledging the possibility of ongoing cyclical concerns due to tariffs and their macroeconomic impact, the analyst expressed confidence in Siemens’ long-term prospects, particularly in the fields of automation and electrification. This confidence is supported by the company’s strong fundamentals, including a 2.66% revenue growth and an impressive dividend track record of 34 consecutive years of payments. InvestingPro subscribers can access 8 additional key insights about Siemens’ financial health and growth prospects.
Siemens’ comprehensive range of offerings within the software and automation markets was emphasized as a key strength in the analyst’s assessment. The upcoming Capital Markets Day (CMD) in December is anticipated to provide further insight into the company’s profit and growth prospects in the software segment. Additionally, the CMD may shed light on Siemens’ long-term plans for its Healthineers division, with the analyst suggesting a potential spin-off to shareholders could be beneficial.
The reinstated Buy rating and EUR245 price target reflect the analyst’s renewed confidence in Siemens’ strategic positioning and its ability to capitalize on the growing demand for advanced industrial technologies. The company’s upcoming CMD is expected to be a significant event for investors seeking clarity on Siemens’ future direction and financial outlook.
In other recent news, Siemens has announced plans to cut jobs in its automation and electric vehicle (EV) charging sectors globally, affecting around 5,600 positions in automation and 450 in EV charging. Despite these cuts, Siemens remains committed to Germany, with significant investments planned, including a €500 million research and manufacturing campus. Meanwhile, Siemens’ financial performance has been a focal point for analysts. BofA Securities upgraded Siemens’ stock rating to Buy and raised the price target to EUR265, citing improvements in the Digital Industries segment and potential stake sell-downs in Siemens Healthineers and Siemens Energy. Morgan Stanley (NYSE:MS) also raised Siemens’ price target to EUR250, noting the company’s strong performance but maintaining an Equalweight rating due to valuation concerns. Conversely, Deutsche Bank (ETR:DBKGn) downgraded Siemens from Buy to Hold, maintaining a price target of €240, reflecting limited upside potential. These developments highlight the varied analyst perspectives on Siemens’ strategic moves and market positioning.
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