Siemens "hold," target price reduced

05.11.08 - Deutsche Bank

LONDON, November 5 (newratings.com) - Analyst Peter Reilly of Deutsche Bank maintains his "hold" rating on Siemens AG (SIE-EUR). The target price has been reduced from ?100 to ?70.

In a research note published this morning, the analyst mentions that the company is expected to report FY08 sales of ?22,095 million, sector profits of ?1,785 million and pre-tax losses of ?190 million. The analyst expects Siemens to reduce its FY09 sector profits outlook due to the deteriorating economic conditions. The sector profit forecasts for FY09 and FY10 have been reduced by 13% and 20% respectively.