Siemens shares hit a record high after Jefferies gives it the highest target on the street
Summary
Besides Jefferies, six other analysts are projecting shares of Siemens to trade above the mark of ₹7,000 going forward. Following Jefferies, Motilal Oswal has the highest target on the street for Siemens at ₹7,800.
Shares of Siemens Ltd. are trading at a record high on Wednesday, May 15. The stock crossed the ₹7,000 mark, making an all-time high of ₹7,240.
Global brokerage firm Jefferies has maintained a ‘Buy’ rating on the stock but has revised its price target higher to ₹8,000 per share.
The revised price target from Jefferies implies a potential upside of 21% from the stock’s Tuesday’s closing levels. This is also the highest price target for the stock on the street.
Besides Jefferies, six other analysts are projecting shares of Siemens to trade above the mark of ₹7,000 going forward. Following Jefferies, Motilal Oswal has the highest target on the street for Siemens at ₹7,800.
At its analyst meet during the first half of FY24, Siemens highlighted that its Q2SY24 results reflected the continuous robustness in government infrastructure spend and beginning of the private sector capex.
Going forward, Jefferies sees the company benefiting from sizeable Power Transmission capex ordering, which should lead to operating leverage surprises with higher capacity utilisation.
The Board of Siemens has approved a proposal to demerge its energy business into a separate legal entity – Siemens Energy India Ltd.
The new entity will subsequently be listed on the BSE Ltd and National Stock Exchange of India Ltd by CY25-end.
As per the scheme of arrangement, shareholders of Siemens Ltd will receive one share of Siemens Energy India Ltd for every one share of Siemens Ltd.
Accordingly, Motilal Oswal has raised its estimates for FY24, FY25, and FY26 by 17%, 18%, and 26%, respectively, primarily to factor in higher margin.
In past three trading days, Siemens has rallied 17%, while, in the past six months, it has zoomed 100%.
Out of the 26 analysts that track Siemens, 17 of those have a ‘Buy’ recommendation, four say ‘Hold’, while five have a ‘Sell’ recommendation on the stock.
Siemens shares are trading with gains of 6.60% at ₹7,100 apiece on the NSE.
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