NewsSiemens "overweight," target price reduced
18.03.08 - J.P. Morgan Securities
LONDON, March 18 (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 ?120 to ?102.
In a research note published this morning, the analysts mention that the company is likely to take additional charges of ?350 million and ?100 million in FY08 and FY09, respectively. Siemens expects to incur further charges going forward at the PG and Transport divisions. The company does not seem to have the capability to manage the turnkey projects, JP Morgan adds. The EPS estimates for 2008 and 2009 have been reduced from ?6.34 to ?5.51 and from ?7.78 to ?7.28, respectively, to reflect the charges and the currency movements.