Siemens "neutral"

13.11.06 - J.P. Morgan Securities

LONDON, November 13 (newratings.com) - Analysts at JP Morgan maintain their "neutral" rating on Siemens AG (SIE). The target price is set to ?84.

In a research note published this morning, the analysts mention that FY06 has been a disappointing year for the company. The catalysts for a positive outlook on Siemens?s stock include the ending of the performance gap with peers, increased earnings consistency, improvement in the significantly weak cash flow performance and simplification of governance structure. The analysts express their optimism regarding the company?s introduction of specific cash bonuses, increased group hurdle rates and reduced capex allocation.