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.