Siemens Ends 2021 In Line With Expectations; Continues To Recycle Cash Into Growth Markets

Siemens' full year results were in line with our expectations and we are maintaining our narrow moat rating and fair value estimate. Orders grew ahead of revenue and management expects supply chain tightness to loosen in 2022. Management also expects revenue growth of 5%-8% in digital industries, smart infrastructure and mobility in line with our current forecasts and the medium-term guidance range. Operating profit margins were in line with our expectations for the full year, and the guidance for 2022 as well, with the exception of mobility where guidance is about 150 basis points below our expectations. We expect to make adjustments to our model but not materially impact our valuation.