BoFA Securities has maintained its underperform rating on Siemens while raising the target price to ₹2,800, cautioning that another round of earnings downgrades could be on the horizon. The brokerage said that one round of earnings cuts is already behind, but expectations in certain segments remain elevated, setting up potential for disappointment.
It flagged that the street remains overly optimistic on the smart infrastructure (SI) segment, while the digital industries (DI) business — which is short cycle in nature — is being impacted by weak private capex trends. With valuations near their long-term averages, BoFA said the risk of earnings failing to match expectations leaves limited scope for upside. The brokerage reiterated its cautious stance, highlighting that near-term cyclical weakness in key verticals could weigh on Siemens’ performance despite its strong long-term positioning.
Disclaimer: The views and recommendations made in this article are those of BoFA Securities. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
