Siemens "overweight," target price reduced

28.01.08 - J.P. Morgan Securities

LONDON, January 28 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on Siemens AG (SIE), while reducing their estimates for the company. The target price has been reduced from ?122 to ?120.

In a research note published this morning, the analysts mention that the company?s stock has outperformed the sector by 20% over the last 12 months. Siemens has reported its 1Q core operating profits ahead of the estimates, the analysts say. The adjusted EPS estimates for 2008 and 2009 have been reduced by 1% and 3%, respectively, to reflect reduced PG margins and declining growth in cyclical businesses due to a revised economic outlook.