Siemens: Deutsche Bank reinstates at 'buy'

(CercleFinance.com) - Deutsche Bank has reinstated its coverage of the Siemens stock with a "buy" rating and a target price of 122 euros after the company's shareholders approved the planned spin-off of Siemens Energy last week.


"The separation of Siemens from its energy-related activities will refocus and simplify the group's portfolio and is key to reduce the stock's discount to the sector average", the broker wrote in a note.

In a nutshell, Deutsche Bank expects Siemens shareholders to get shares in Siemens Energy "nearly for free" on 28 September, and expects the rest of the portfolio to further re-rate.

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