Thursday, September 23, 2010

Zacks Upgrades Siemens to Outperform with $121 price Target (SI)

We are fans.
The stock is trading down 1.3% at $101.91.
From Zacks Equity Research:
We are upgrading our Neutral recommendation on Siemens (SI - Analyst Report) to Outperform with a $121 target price. Revenue and orders both increased year-over-year in the third quarter of 2010.

Revenue also increased sequentially for the second quarter in a row. The order backlog for all sectors hit 89 billion at the end of the third quarter. The company's pension plan continues to be in an underfunded status.

Our long-term Outperform recommendation on the stock indicates that it will outperform the broader U.S. equity market over the next six to twelve months. Our target price is $121.00 or 12.97X 2011 EPS, which is well within the historical range.