Morgan Stanley downgrades Siemens Healthineers stock on parent company selldown concerns

Published 14/10/2025, 12:38
Morgan Stanley downgrades Siemens Healthineers stock on parent company selldown concerns

Investing.com - Morgan Stanley downgraded Siemens Healthineers (ETR:SHL) (OTC:SEMHF) from Overweight to Equalweight on Tuesday, while reducing its price target to EUR53.00 from EUR62.00.

The downgrade comes amid concerns about potential further share selldowns by parent company Siemens AG, which has already reduced its stake in Siemens Healthineers from 85% post-IPO to 71% as of July 31, 2025.

Siemens AG has conducted two consecutive stake sales this year, with reductions to 73% in February 2025 and further to 71% by July, representing a combined selldown of 14% of its original stake.

During its third-quarter 2025 earnings call, Siemens AG management indicated it might finance acquisitions including Altair and potentially Dotmatics through additional Siemens Healthineers share sales, with more details expected at Siemens AG’s Capital Markets Day on November 13.

Morgan Stanley analysts believe a further sale is possible, with market speculation suggesting Siemens AG might reduce its stake below the controlling threshold of approximately 49%, which would imply an additional 22% reduction from current levels.

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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