Jefferies maintains its 'buy' recommendation on Siemens while raising its price target from €185 to €225, believing in particular that 'the market continues to underestimate Siemens' ability to generate results at a cyclical trough in automation'.

Perhaps Siemens isn't the industry's card to play AI like Schneider, but average annual EPS growth in the mid-10% range to 2026 surely looks very compelling at a 30% valuation discount', he judges.

According to Jefferies, Digital Industry trades at an implied EV/EBITA of 7.4 times, or 46 euros too cheap. In fact, our valuation of DI at 17 times EBITA, and therefore of software at six times revenues, still seems conservative", continues the broker.

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