Stifel Nicolaus analyst Alexander Wahl maintained a Buy rating on Siemens (0P6M – Research Report) today and set a price target of €244.00.
Alexander Wahl has given his Buy rating due to a combination of factors, primarily focusing on Siemens’ strategic acquisitions and financial outlook. The recent acquisition of Dotmatics, valued at $5.1 billion, is expected to enhance Siemens’ capabilities in the life sciences sector by bridging early-stage drug discovery and large-scale pharmaceutical production. This move is anticipated to expand Siemens’ addressable software market by approximately $11 billion, highlighting the company’s commitment to growth and innovation.
Furthermore, the acquisition is projected to be accretive to Siemens’ growth, profitability, and cash generation, with expected medium-term revenue synergies of around $100 million and long-term synergies exceeding $500 million. Siemens plans to finance this acquisition by selling shares of listed entities, including a portion of its stake in Siemens Healthineers, ensuring that leverage remains within the target range. These strategic decisions, coupled with Siemens’ ongoing share buyback program and progressive dividend policy, underpin Wahl’s positive outlook and Buy rating for the company’s stock.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a €261.00 price target.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0P6M in relation to earlier this year.