Trump announces trade deal with EU following months of negotiations
On Monday, Morgan Stanley (NYSE:MS) updated its perspective on Siemens AG (SIE:GR) (OTC: OTC:SIEGY (BCBA:SIEGYm)), increasing the price target from EUR240.00 to EUR250.00 while maintaining an Equalweight rating on the shares. The industrial conglomerate, with a market capitalization of $194.69 billion, has demonstrated strong performance, with a notable 35.82% year-to-date return. According to InvestingPro analysis, the company maintains a GOOD financial health score, though it’s currently trading above its Fair Value.
The research firm highlighted Siemens (ETR:SIEGn)’ successful year, pointing out the company’s significant achievements such as the German listing, positive changes in Digital Industries (DI) orders, and the potential benefits from its diverse portfolio. The analysts at Morgan Stanley believe that the consensus estimates for Siemens might still be too conservative, suggesting the possibility of better-than-expected financial outcomes. The company’s strong fundamentals are reflected in its 34-year track record of consistent dividend payments and impressive 46.3% return over the past six months.
Despite the positive outlook, Morgan Stanley has adjusted its stance on the stock’s relative value. The analysts mentioned that following the recent increase in Siemens’ stock price, the absolute valuation appears less attractive than before. Consequently, Siemens has been removed from Morgan Stanley’s position as a Top Pick.
This adjustment comes after Siemens has demonstrated a solid track record, ticking off numerous goals. The analysts remain Overweight (OW) on the stock, indicating that they expect it to outperform relative to other stocks in the sector.
Investors and market watchers will be paying close attention to Siemens’ stock performance in the wake of this updated price target and the firm’s continued confidence in the company’s prospects, despite the shift in its top recommendation status.
In other recent news, Siemens AG has received an upgraded stock rating from BofA Securities, which has moved the rating from Neutral to Buy. The analyst Alexander Virgo increased the price target to EUR265.00, citing positive developments in Siemens’ Digital Industries segment, including improvements in organic growth and profit margins. Additionally, the analyst noted potential changes in Siemens’ portfolio, such as possible sell-downs of stakes in Siemens Healthineers and Siemens Energy. These strategic moves are expected to enhance Siemens’ financial standing.
BofA Securities also raised its EBITA estimates for Siemens by 1-2%, positioning them approximately 1% above the consensus for the fiscal years 2026-2027. The conglomerate discount in BofA’s valuation model was reduced to 5% from 10%, reflecting anticipated changes in Siemens’ portfolio. The revised valuation model and enhanced growth and margin expectations contributed to the new price target. These developments indicate a more favorable outlook on Siemens’ financial and strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.