Siemens "neutral," target price reduced

04.07.06 - J.P. Morgan Securities

LONDON, July 4 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on Siemens (SIE-EUR). The target price has been reduced from ?79 to ?78.

In a research note published this morning, the analysts mention that the company?s strategy to enter in-vitro diagnostics through the acquisitions of DPC and Bayer Diagnostics for ?5.7 billion appears to be a sound move. The analysts believe, however, that Siemens paid a full price for the acquisitions. The acquisitions are likely to be EVA accretive only by the middle of the next decade, JP Morgan adds.