Jefferies reiterates buy rating on Siemens stock amid energy demerger

Published 18/06/2025, 07:58
Jefferies reiterates buy rating on Siemens stock amid energy demerger

Siemens Ltd . (NSE:SIEM:IN) completed its energy business demerger on April 7, 2025, with the parent company’s stock opening at INR2,450 per share and the newly formed Siemens (ETR:SIEGn) Energy entity valued at approximately INR2,478 per share.

Jefferies maintained its buy rating on Siemens stock with a price target of INR3,700, according to a research note published Monday. The firm expects the demerged Siemens Energy to become India’s largest listed pure-play power transmission and distribution equipment company with a market capitalization exceeding USD10 billion.

The newly listed entity would surpass competitors Hitachi (OTC:HTHIY) and GE, which have market capitalizations between USD6.8 billion and USD9.6 billion in the same sector, positioning Siemens Energy as a dominant player in India’s power equipment market.

Jefferies projects Siemens Energy will achieve a 40% earnings per share compound annual growth rate from fiscal year 2024 through 2027, driven by what it describes as a "robust T&D pipeline and operating leverage."

The research firm suggests this growth trajectory indicates "healthy upside potential" for Siemens Energy shares at prices below INR3,000, reflecting optimism about the newly independent company’s prospects in India’s expanding power infrastructure sector.

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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