Siemens "buy," target price reduced

18.03.08 - UniCredit Markets & Investment Banking

LONDON, March 18 (newratings.com) - Analysts at UniCredit Markets maintain their "buy" rating on Siemens AG (SIE). The target price has been reduced from ?121 to ?105.

In a research note published this morning, the analysts mention that the company is conducting a review of its major projects and has announced a negative impact of around ?900 million so far on the current year?s profit figures. Siemens has also announced that about 80% of its relevant projects have been reviewed and problems, such as risk in some turnkey projects and supplier-related issues, have been identified. The EPS estimates for FY08 and FY09 have been reduced from ?6.17 to ?5.13 and from ?7.86 to ?7.52, respectively.