Siemens "outperform," target price raised

05.02.07 - Credit Suisse

LONDON, February 5 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Siemens (SIE), while raising their estimates for the company. The target price has been raised from ?79 to ?95.

In a research note published on February 2, the analysts mention that margins at eight out of the company?s ten divisions improved y/y in 1Q. While Siemens is unlikely to undertake any major acquisitions in the near term, disposals in addition to that of VDO are expected in 2007, the analysts say. This is likely to be earnings dilutive but multiple-enhancing, Credit Suisse adds. The EPS estimate for FY07 has been raised by 13% to reflect the robust 1Q results.