Siemens "overweight," target price reduced

22.04.08 - J.P. Morgan Securities

LONDON, April 22 (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 ?102 to ?100.

In a research note published this morning, the analysts mention that the company's 2Q underlying operating profits are likely to be ahead of the consensus. A moderate US/European recession and project charges are expected to adversely impact Siemens? EPS in 2009, the analysts say. The company is unlikely to provide significant details regarding its SG&A programme, JP Morgan adds. The EPS estimates for the current and next year have been reduced from ?5.51 to ?5.41 and from ?7.28 to ?7.18, respectively.