On Monday, Deutsche Bank (ETR:DBKGn) adjusted its outlook on Siemens AG (ETR:SIEGn) (SIE:GR) (OTC: OTC:SIEGY (BCBA:SIEGYh)) shares, increasing the price target to EUR200.00 from EUR195.00, while reaffirming a Buy rating on the stock.
The action comes in response to an analysis addressing concerns about Siemens' market share in China and the forecast for Fiscal Year 2025 (FY25).
The firm's review of Siemens' performance in the Chinese automation market indicates that the company has maintained steady market shares across all key categories, despite temporary unfavorable mix effects.
Furthermore, an in-depth examination of the Digital Industries segment's backlog, order intake, and revenue trends suggests that automation orders are currently 30% below normalized levels. Deutsche Bank anticipates a strong rebound in these orders by FY25.
Siemens' overall performance is described as robust, propelled by secular growth in electrification and continued optimization of corporate expenses. Despite these positive factors, Siemens' shares have underperformed the sector average by 10% year-to-date.
The analyst at Deutsche Bank expressed confidence in Siemens' prospects, noting that the rest of the company is performing well, with secular growth trends and expense optimizations contributing to a positive outlook. This perspective underpins the rationale for maintaining a Buy rating and lifting the price target for Siemens AG shares.
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