RBC cuts Siemens to 'sector perform', says valuation at premium

Siemens Healthineers AG

19/03/2025 12:35

** RBC downgrades Siemens SIEGn.DE to "sector perform" from "outperform", saying the German technology conglomerate's valuation reaches sector premium

** Siemens has outperformed the sector by 12% over the last three months, moving from a valuation discount to a premium, RBC notes

** It attributes the rally to Siemens's review of its ownership of Healthineers SHLG.DE, which would improve the balance sheet

** However, the broker does not expect Siemens's full exit from the healthcare subsidiary, adding a decision is not aniticpated until December

** Siemens now trades at 18 times 2025 expected enterprise value (EV)/EBITA, an 8% premium to the sector average of 17 times, according to the brokerage

** Out of 25 analysts that cover Siemens, 20 rate the stock "strong buy" or "buy", four "hold" and one rates the stock "sell"

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))