Siemens "buy," target price reduced

14.04.08 - Dexia Securities

LONDON, April 14 (newratings.com) - Analyst Dieter Furniere of Dexia Securities maintains his "buy" rating on Siemens AG (SIE). The target price has been reduced to ?100.

In a research note published this morning, the analyst mentions that General Electric issued a profit warning due to its inability to complete its asset sales and higher-than-anticipated losses at its finance businesses. The major short-term impact of the weak results for General Electric?s healthcare segment is likely to be on Siemens, which generates 20% of its total EBIT from the segment, the analyst says. Siemens? PG, A&D, Medical, Transport and Lighting segments are likely to deliver lower-than-previously-expected margins and growth going forward, Dexia Securities adds.