SIEMENS

Siemens shares dropped around 2.5 percent on June 20 after Bank of America (BofA) Securities maintained its 'underperform' rating on the stock. Siemens Energy, which had seen significant surge in the previous day following its demerger and subsequent market debut, also dropped in trade. Siemens shares were trading at around Rs 3,203.70 apiece. BofA Securities maintained an 'underperform' call on the stock with a target price of Rs 2,564 apiece. This implies a downside potential of nearly 22 percent from the stock’s previous closing price of Rs 3,284.80 apiece. BofA Securities said that the stock, after its demerger with Siemens Energy, is expensive at 56x FY27. The global brokerage said that the core business of the company faces weak private capital expenditure. Its growth is currently driven by public capital expenditure and mobility, despite challenges in execution, it added. The brokerage further noted that Siemens' digital margin remains under pressure, although recovery depends on mobility and smart infrastructure growth.