(new: share price, experts, and details)
FRANKFURT (dpa-AFX) - Siemens shares extended their rally on Monday afternoon, leading the Dax with gains of more than 5 percent at times. Reaching a peak of 255.65 euros, Siemens stock is attempting to close the gap left in mid-February, when prices retreated shortly after hitting a record high of nearly 276 euros. The heavy-weighted Siemens shares provided significant support to the German benchmark index, which was trading 1 percent higher in the afternoon.
Analyst Alasdair Leslie of Bernstein Research raised his price target for Siemens from 290 to 300 euros. He noted that the technology group's shares have underperformed competitors since the start of the year due to concerns over the impact of Artificial Intelligence (AI) on the software business, short-term cyclical risks, and increasing corporate complexity following the upcoming restructuring. However, he considers these concerns unjustified and expects a re-rating of Siemens in the coming months. He also sees room for increased share buybacks.
With the current gains, Siemens shares have posted a 6.7 percent increase since the beginning of the year. In comparison, French competitors Schneider Electric and Legrand have each gained about a fifth, while Switzerland's ABB has surged by a third.
Analyst Leslie is now more confident that Siemens can close the valuation gap with its peers. He argues that Siemens will become leaner and more high-quality in the future, thanks to its leading position in automation and electrification. Furthermore, the de-consolidation of Healthineers should remove a significant share overhang and unlock further re-rating potential. The expert also sees an increasing likelihood of a Capital Markets Day this year, where Siemens could redefine targets for Smart Infrastructure and Digital Industries under a new 'One Tech' umbrella - a move Leslie views as a potential catalyst./ajx/la/jha/
