(updated: comments from RBC and Jefferies, stock prices)

FRANKFURT (dpa-AFX) - After raising its earnings forecast, Siemens has overtaken SAP to once again become the most valuable company in the DAX, following a strong surge in its share price.

Shares of the Munich-based technology and industrial group climbed as high as €275.75 by midday and were up 7 percent in the afternoon, trading just above €274. Meanwhile, shares of Europe's largest software maker SAP, which have recently been battered by concerns over artificial intelligence, rose by nearly 2 percent to €172.20. SAP's market capitalization now stands at approximately €211.5 billion, while Siemens' market value has risen to about €219 billion.

Since the start of the year, Siemens shares have gained about 14 percent, while SAP stock has suffered a loss of around 17 percent. Since reaching their record high a year ago, SAP shares have lost more than a third of their value.

RBC analyst Mark Fielding raised his estimates after the Siemens earnings call, increasing his price target from €245 to €270 while maintaining his neutral rating on the stock. "Siemens exceeded expectations for its industrial business by 10 percent in the first fiscal quarter, with stronger margins in Digital Industries (DI) and Smart Infrastructure (SI)," he noted. The forecasts for the full fiscal year also indicate that both segments are trending toward the upper end of their target ranges.

Analyst Rizk Maidi from Jefferies highlighted that, similar to competitor ABB, the Munich-based company achieved higher order intake in the data center sector, which in turn significantly boosted orders in the SI segment. Additionally, orders in the DI segment increased, supported by robust growth in automation in China and solid software growth. Siemens has now raised its target range for annual earnings per share before certain purchase price effects—the company's key profit metric—to between €10.70 and €11.10. Previously, an increase to between €10.40 and €11.00 had been forecast. However, according to Maidi, this is "conservative" when looking at the midpoint of the range.

The earnings consensus for 2025/26 is now expected to rise in the low single-digit percentage range, according to analyst Daniela Costa from Goldman Sachs./ck/ag/nas/jha/