Siemens "buy," target price raised

08.05.07 - Deutsche Bank

LONDON, May 8 (newratings.com) - Analyst Peter Reilly of Deutsche Bank maintains his "buy" rating on Siemens AG (SIE). The target price has been raised from ?100 to ?110.

In a research note published this morning, the analyst mentions that the company has reported robust 2Q07 results, with organic sales growth and group profits ahead of expectations. The performance of Siemens? A&D, PG and PTD divisions was robust in the quarter due to internal investments and impressive demand, the analyst says. The company is likely to become highly cash generative going forward, if it meets its group ROCE and cash flow targets, Deutsche Bank adds.