Siemens: top gainer on DAX after broker upgrade

(CercleFinance.com) - Siemens shares were one of the top risers on Germany's DAX index on Tuesday, up more than 1.
5%, as investors bought the stock after a broker upgrade.

This morning Credit Suisse upgraded its rating on the stock from "neutral" to "outperform," saying that the group's structurally simplified portfolio and cost measures outweigh cyclical risks.

Earlier this month, Siemens said that it will spin-off its oil and gas unit into a new, separate entity, which is set to be listed next year.

"Siemens is moving to become a focused 60/40 automation/buildings business with a dominant position in automation," the broker said.

Credit Suisse expects the German industrial group to benefit from cost-cutting and productivity, as well as a better pricing environment. It has raised its target price from 115 euros to 143 euros.

The Siemens shares are currently up 1.6% at 107.2 euros in Frankfurt.

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