NewsSiemens "buy," target price raised
23.11.07 - Dexia Securities
LONDON, November 23 (newratings.com) - Analyst Jo De Mil of Dexia Securities maintains his "buy" rating on Siemens (SIE). The target price has been raised to ?126.
In a research note published this morning, the analyst mentions that according to Les Echos, Siemens plans to invest several billion euros in Areva, in which it already has a 34% stake. The French government's decision to overhaul the nuclear sector would result in a reshuffling of Areva's shareholder structure, providing an investment opportunity to Alstom and Bouygues, the analyst says. Siemens does not intend to share Areva's capital with Alstom and may use its ample cash reserves to acquire more stake in Areva, Dexia Securities adds. The upward revision in the target price reflects the company's robust FY06/07 results, according to the analyst.