Analyst Note
| Denise Molina, CFA |Siemens reported a solid fourth quarter and enters 2023 with a solid backlog that will support revenue growth, adding some defensiveness against any GDP slowdown-driven demand deterioration. Order growth slowed in the fourth quarter relative to revenue growth with the book-to-bill close to 1 for most divisions. While slowing order growth might normally be a precursor to slower revenue growth, Siemens management guided for 6% to 9% organic revenue growth in 2023, similar to the 8% achieved in 2022. We expect to make adjustments to our forecasts and anticipate roughly a 5% positive impact on our EUR145 fair value estimate. We maintain our narrow-moat rating.