Haitong's price target on Siemens implies a 20% upside

Mumbai: Brokerage Haitong has raised its price target on engineering firm Siemens to ₹4,800 from ₹4,300 as it remains positive on the long-term prospects of the company amid the upturn in the capex cycle. The target price implies an upside of almost 20% over Tuesday's closing price of ₹3,991.

Reiterating its 'outperform' rating on the stock, Haitong said it expects Siemens to post revenue and earnings growth of 20% and 22%, respectively, over FY23-26 on a compounded basis.

"Enquiries are strong, and Siemens believes the private capex is at an inflection point," said Haitong's analysts Rahul Gajare and Maulik Shah in a note to clients.


The brokerage said strong government spending is seen in sectors like rail, road, and energy with 70% of the government outlay being implemented. The average capacity utilisation in the private sector stands at 75-80% after which generally the private sector capex commences.

Siemens shares have risen 41% so far in 2023 as against 19.30% gains in the BSE 100 index.

Out of the 26 brokerages with coverage on the company compiled by Bloomberg, 17 have a 'buy' on the stock, three have a 'hold' rating and six have a 'sell' rating. The average price target of these analysts on the stock is ₹4,160.