Update shared on09 Oct 2025
Fair value Increased 1.53%Siemens' analyst fair value price target has increased modestly to €250.22 from €246.46. Analysts point to steady improvements in revenue growth and profit margin, despite mixed views on segment performance.
Analyst Commentary
Analyst sentiment around Siemens remains divided, with both optimistic and cautious perspectives emerging from recent research updates. The following summarizes the key bullish and bearish takeaways tied to valuation, execution, and growth outlooks.
Bullish Takeaways- Bullish analysts highlight Siemens’ sustained potential to outgrow peers in earnings and support a premium valuation compared to the sector.
- Recent research resumes coverage with Overweight ratings and emphasizes ongoing operational execution and visibility into future growth catalysts.
- Upward price target revisions reflect positive expectations for continued revenue growth and margin improvements.
- Inclusion on institutional focus lists signals increasing confidence in the company's near-term catalysts and execution into upcoming events.
- Bearish analysts express concern that certain business segments, notably electrification and mobility, deliver significantly lower operating margins compared with industrial automation and may weigh on overall profitability.
- Some anticipate Siemens’ sales and profit growth could lag behind key competitors in the coming year, which tempers expectations for outperformance.
- Persistent Hold ratings despite price target increases suggest ongoing caution about the company’s ability to consistently deliver above-industry results.
- The mixed segment performance signals execution risks that may limit the upside potential in the medium term.
What's in the News
- Siemens is evaluating a potential spinoff of much of its majority stake in Siemens Healthineers. The company may distribute shares to investors as a dividend, though no decision has been made yet (Bloomberg).
- The company held an Analyst/Investor Day to outline performance, strategy, and technological developments (Key Developments).
- Siemens issued group earnings guidance for fiscal year 2025, projecting 3% to 7% comparable revenue growth and basic earnings per share pre-PPA between EUR 10.40 and EUR 11 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from €246.46 to €250.22, reflecting increased confidence in Siemens’ value.
- Discount Rate has fallen modestly from 5.83% to 5.73%, suggesting a slightly lower required return for investors.
- Revenue Growth projection has increased narrowly from 6.13% to 6.20%, indicating marginally higher expectations for future expansion.
- Net Profit Margin estimate has improved from 11.19% to 11.25%, showing continued optimism in profitability.
- Future P/E ratio has edged up from 21.92x to 22.04x, suggesting a modestly higher valuation relative to projected earnings.
Disclaimer
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