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Jefferies lifts Siemens AG shares target, buy rating on solid Q1 outlook

Published 20/12/2024, 13:30
Jefferies lifts Siemens AG shares target, buy rating on solid Q1 outlook
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On Friday, Jefferies increased its price target for shares of Siemens AG (SIE:GR) (OTC: OTC:SIEGY (BCBA:SIEGYm)) to €230.00, up from the previous €225.00. The firm also reaffirmed its Buy rating on the stock. The adjustment follows the anticipation of a strong first quarter, primarily driven by the Digital Industries (DI) segment and order rates moving into the second quarter.

The analyst from Jefferies indicated that management has observed high single-digit growth in automation orders in October and anticipates this trend to have persisted throughout the first quarter.

The firm’s projections are consistent with consensus estimates for DI orders in the first quarter but are 3% higher for the full year 2025, expecting a more robust recovery in the second half. For fiscal year 2026, they are 7% above consensus, as automation order volumes are expected to return to the levels seen in fiscal year 2019, which were approximately 30% higher when adjusted for price.

Jefferies further anticipates that Siemens (ETR:SIEGn) AG’s industrial profits will surpass consensus estimates by 2% in the first quarter. The revised price target of €230 reflects the firm’s confidence in Siemens AG’s performance and growth prospects, particularly in the automation sector. The analyst’s statement underscores the expectation of a continued upward trajectory for the company’s order volumes and profits.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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