Siemens : Oddo BHF reduces target price

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Siemens shares, with a target price lowered from E196 to E185.


The analyst reports that Q3 orders fell by 15% LFL (vs. consensus -16.3%), to E19.8 bn, while sales rose by 5% LFL to E18.9bn (vs. consensus +4.3%).

According to Oddo BHF, the DI (Digital Industries) division continues to perform poorly, despite some encouraging signs, particularly in the chemicals sector, but also in semi-conductors and electronics.

The CEO recognises that the challenge now is to strike a balance between short-term margins (capacity and cost reductions underway, which will bear fruit in 2025) and medium-term potential (deemed intact), the broker reports.

Against this backdrop, Oddo BHF is lowering its 2025 EPS forecast by over 5%, while pointing out that its 2024 estimates are only 'slightly adjusted' (-0.8%), with the better-than-expected Q3 (notably DI and SI) offsetting the weaker Q4 (still DI).


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