Siemens: Morgan Stanley says time for a break

(CercleFinance.com) - Siemens shares were one of the biggest fallers on the DAX index on the Frankfurt Stock Exchange on Monday, after Morgan Stanley said that the stock was no longer its preferred stock within the European capital goods sector ('top pick').


Following the stock's recent rise, the broker believes that favourable news on earnings forecasts and potential asset disposals will be needed to push the share price up.

While it acknowledges that Siemens "ticks all the boxes" thanks to its ownership of German shares, the inflection of its digital industry business and the prospect of a change in its consolidation scope, all of which it believes are likely to lead to an upward revision of market forecasts, the analyst considers that its valuation in absolute terms has become less favorable after the recent stockmarket rally.

In six months, the stock has risen by over 40%.

Following Morgan Stanley's comments, Siemens shares were down over 3.5% late on Monday morning.


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