Siemens "overweight," target price raised

12.11.07 - J.P. Morgan Securities

LONDON, November 12 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on Siemens AG (SIE-EUR), while raising their estimates for the company. The target price has been raised from ?115 to ?125.

In a research note published this morning, the analysts mention that the company is focusing on the right issues, including SG&A costs, governance and the distribution of excess capital. Siemens? group operating margins are expected to improve from 6.9% in 2007 to 10.6% by 2010, the analysts say. The EPS estimates for 2008 and 2009 have been raised from ?6.65 to ?6.67 and from ?7.97 to ?8.37, respectively.