FRANKFURT (dpa-AFX) - Siemens shares reached a record high on Thursday. Rising 3.5 percent to approximately 276 euros, they built on the previous day's gains following the technology group's quarterly results and confirmed annual targets, narrowly surpassing the previous peak set in February. The stock was supported by positive research notes suggesting significant further upside potential.
Swiss investment bank UBS raised its price target from 300 to 310 euros following a deeper analysis of business performance and maintains its 'buy' rating. Analyst Andre Kukhnin noted that Siemens is satisfying investors in terms of business growth in electrification and automation, as well as margin expansion. He revised his earnings estimates upward for the core business segments of Smart Infrastructure, Digital Industries, and Mobility for the coming fiscal year, though he still considers these estimates to be relatively conservative.
According to Kukhnin, the full-year results due in November are expected to serve as a major catalyst for the share price. The prospect of deconsolidating the stake in medical technology group Siemens Healthineers, along with a decentralization of corporate management next spring, could also benefit the stock. The valuation remains attractive compared to European peers such as ABB, Schneider Electric, and Legrand.
U.S. bank JPMorgan raised its Siemens price target from 325 to 335 euros and also maintains its positive investment rating. Analyst Phil Buller is betting on even greater earnings momentum in both Digital Industries and Smart Infrastructure in the coming fiscal year./gl/ajx/jha/
