Siemens: BofA raises its buy recommendation
(CercleFinance.com) - BofA announced on Wednesday that it had upgraded its recommendation on Siemens shares from 'neutral' to 'buy', with a price target raised from €245 to €265, saying it saw an inflection point on the stock.
In its note, the research firm points out that organic growth and margins in the group's industrial automation and digitalization division ('Digital Industries') are returning to a favorable dynamic.
BofA also believes that shareholders could benefit from a change in the conglomerate's asset portfolio, with possible divestments of stakes in Siemens Heatlhineers and Siemens Energy.
Finally, analysts point out that the stock is trading in line with the capital goods sector, i.e. on the basis of an Enterprise Value/Ebitda ratio of around 12x, while the group is posting higher growth and margins, and the uncertainty surrounding the results of the German elections has now been resolved.
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