Siemens "buy," target price reduced

18.03.08 - Dresdner Kleinwort Wasser.

LONDON, March 18 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on Siemens AG (SIE). The target price has been reduced from ?125 to ?90.

In a research note published this morning, the analysts mention that an audit of nearly 80% of the company?s projects has revealed the need to incur charges worth ?900 million in 2Q. The analysts expect Siemens to report further charges in its Power, Transport and IT Solutions divisions going forward. The EPS estimates for FY08 and FY09 have been reduced by 23% and 17%, respectively.