Siemens: shares weaker, Liberum cuts rating to 'hold'.
(CercleFinance.com) - Siemens shares are down slightly in Frankfurt on Thursday after a British investment bank cut its rating on the German industrial group to "hold", seeing earnings risks ahead.
In its downgrade from a "buy" rating, Liberum explained why the company's Digital Factory division estimates for fiscal year 2018 are "at risk".
In the report, Liberum said that licensed software earnings (10% of the digital factory unit) could fall about 50%, in line with other software companies that shifted business models, as Siemens now intends.
In addition, the investment bank assesses the increased risk of a project charge for the first time in six quarters, resulting from the crisis in Qatar.
Liberum thinks the risks of delays and cost over-runs have increased significantly because of the tensions between Qatar and other Arab states.
Liberum has also reduced its target price from 160 euros to 134 euros.
The Siemens stock was down 0.6% at 122.1 euros on the Frankfurt Stock Exchange in early trading on Thursday morning.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In its downgrade from a "buy" rating, Liberum explained why the company's Digital Factory division estimates for fiscal year 2018 are "at risk".
In the report, Liberum said that licensed software earnings (10% of the digital factory unit) could fall about 50%, in line with other software companies that shifted business models, as Siemens now intends.
In addition, the investment bank assesses the increased risk of a project charge for the first time in six quarters, resulting from the crisis in Qatar.
Liberum thinks the risks of delays and cost over-runs have increased significantly because of the tensions between Qatar and other Arab states.
Liberum has also reduced its target price from 160 euros to 134 euros.
The Siemens stock was down 0.6% at 122.1 euros on the Frankfurt Stock Exchange in early trading on Thursday morning.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.