Siemens Is Strongly Positioned for Secular Growth Themes; Raising Our FVE to EUR 180

Siemens is a disparate portfolio of high-quality businesses in different sectors. The spin off of its cyclical energy and wind turbine divisions has enhanced the group’s return profile and provides more durable returns than in the past. Further deconsolidation appears unlikely. All its businesses have strong product portfolios to compete in long-term attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth ambition.