Siemens "buy," target price reduced

22.01.08 - Dexia Securities

LONDON, January 22 (newratings.com) - Analyst Jo De Mil of Dexia Securities maintains his "buy" rating on Siemens (SIE-EUR). The target price has been reduced from ?126 to ?117.

In a research note published this morning, the analyst mentions that the company is likely to post its 1Q07/08 orders at ?23.4 billion, primarily driven by robust order intake in the PG, PTD and A&D divisions. Siemens? profits from operations are expected to have risen by 8% y/y to ?1.6 billion on account of margin improvement across operating groups, the analyst adds. The impact of a slowdown in medical spending on the company?s Medical division might be worse than initially expected, Dexia Securities says.