Siemens: Oddo still on hold, maintaining target price

(CercleFinance.com) - Siemens has announced that the results of the digital industries (DI) and smart infrastructure (SI) divisions will be well above expectations.


The group is set to announce its final results on 3 February.

For DI, Siemens AG has reported revenues of 3,765 million euros, up 5% on a comparable basis (above consensus of 3,561 million euros), with adjusted EBITA of 848 million euros, representing a margin of 22.5% (above consensus of 592 million euros; margin 16.6%). In SI, the group announces revenues of 3,477 million euros, up 4% on a comparable basis (above consensus of 3,343 million euros) and an adjusted EBITA of 391 million euros, representing a margin of 11.2% (above consensus of 300 million euros; margin of 9.0%), Oddo says.

Siemens AG has also said that it will change its annual targets, but has not yet given any details. At this stage, the group is aiming for a "moderate increase" in revenues on a comparable basis (3%?) this fiscal year.

At this stage, the 2021 consensus forecasts include consolidated order intake of 59.6 billion euros, revenues of 56.4 billion euros, adjusted industrial EBITA of 7,673 million euros (margin of 14.2%) and net income, group share of 4,437 million euros, the analyst adds.
Regarding valuation, Oddo believes that the stock is relatively expensive at this stage, trading at an underlying EV/EBIT of 17.9x and an estimated EV/EBITDA of 13.0x this year.

As such, the analyst confirms a neutral rating on the stock, with a target price of 112 euros.

The Siemens share is currently up almost 4% at about 128.5 euros.


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