Siemens: Credit Suisse initiates coverage at 'neutral'
(CercleFinance.com) - Credit Suisse has initiated its coverage of the medical division of Siemens, Siemens Healthineers, with a "neutral" rating, following the German conglomerate's flotation of this entity at 28 euros.
The broker has a target price of 33.5 euros for the share.
Of course, Siemens Healthineers is betting on medical imaging systems, which account for 64% of its adjusted operating profit, calculate analysts, which generate one of the highest margins in the industry (19.6%). Siemens Healthineers is counting on the growth of this business to leverage profitability and targets a margin of 20% to 22% over the medium term.
This is all the more so for the time being, the division remains underexposed to the large North American market.
However, all this will take time, believes Credit Suisse, according to which the market share gains recorded in 2015/2016 will be difficult to replicate in 2018. Indeed, Philips has just begun to review its ranges. As Philips' profitability is lower at the moment, competition could increase.
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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.
The broker has a target price of 33.5 euros for the share.
Of course, Siemens Healthineers is betting on medical imaging systems, which account for 64% of its adjusted operating profit, calculate analysts, which generate one of the highest margins in the industry (19.6%). Siemens Healthineers is counting on the growth of this business to leverage profitability and targets a margin of 20% to 22% over the medium term.
This is all the more so for the time being, the division remains underexposed to the large North American market.
However, all this will take time, believes Credit Suisse, according to which the market share gains recorded in 2015/2016 will be difficult to replicate in 2018. Indeed, Philips has just begun to review its ranges. As Philips' profitability is lower at the moment, competition could increase.
Copyright (c) 2018 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.