Axis Capital has maintained its ‘Add’ rating on Siemens but reduced the target price from ₹7,850 to ₹7,278, reflecting a 5.72% upside from the current market price (CMP) of ₹6,885. The brokerage revised its sales, EBITDA, and EPS estimates downward by 9%, 12%, and 11%, respectively, for the FY25-FY27 period.
Axis Capital highlighted a preference for ABB over Siemens, citing factors such as the nature of their order book, margin profiles, and a robust order pipeline. Siemens is expected to drive an earnings CAGR of 18% over the CY24-CY26 period, supported by its operational efficiencies and strategic focus.
However, the brokerage’s decision to slash its target price indicates caution due to subdued growth expectations in certain segments and potential headwinds in execution. Investors are advised to monitor Siemens’ quarterly performance and order intake to gauge its future trajectory.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making investment decisions.