Motilal Oswal's research report on Siemens
The strong focus on products/services has helped Siemens (SIEM) to mitigate the slowdown in industrial capex, as it has been able to capitalize on opex-related spending. We expect the trend to continue, driving strong growth for its products business. Any revival in capex spending can further strengthen its revenue trajectory (not a base-case scenario for us and consensus).
Outlook
The current valuation provides comfort, given the scope of an improvement in the operating performance and the likely gradual recovery in capex spending. We upgrade SIEM to Buy with a target price of INR1,290 (35x Mar’21E EPS).
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