Siemens: share price falls, HSBC upgrades to 'lite
March 05, 2024 at 11:08 am EST
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Siemens shares fell sharply on Tuesday on the Frankfurt Stock Exchange's DAX, as HSBC lowered its recommendation on the stock to 'lighten up'.
The stock is currently losing 0.6%, while the DAX is completely unchanged.
HSBC, which is maintaining its price target of 150 euros, says it is concerned about the industrial group's ability to achieve its targets for the 2023/2024 financial year, given the current weakness of demand in Germany and China.
More generally, in a note devoted to European industrial stocks, the research department explains that it is cautious about the sector after its recent "rally" on the stock market, which in its view incorporates generalized growth over the medium term, whereas only the American market currently appears to be in good shape.
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Siemens AG is one of the world's leading manufacturers of electronic and electro-technical equipments. Net sales (including intragroup) break down by family of products as follows:
- digital industrial equipment (28.2%): automated production, assembly, logistics and monitoring systems, etc.;
- medical equipment (27.8%): medical imaging systems, laboratory diagnostics and hearing aid systems, etc.;
- smart building and infrastructure solutions (25.6%): energy transition solutions, HVAC products (heating, ventilation and air conditioning systems), building security systems (fire detection and protection systems, access control, video surveillance and intrusion detection systems, etc.), building management systems, etc.;
- mobility solutions and systems (13.5%): rail vehicles, rail automation systems, rail electrification systems, digital and cloud-based solutions, etc.
The remaining net sales (4.9%) are primarily from financial activities (leasing, equipment and project financing, financial consulting services, etc.).
Net sales are distributed geographically as follows: Germany (16.3%), Europe/CIS/Africa/Middle East (30.8%), the United States (23.9%), America (5.2%), Asia and Australia (23.8%).