1、CrispIdea|R E S E A R C HSiemens AGE Q U I T Y R E S E A R C H Industrials|Special Industrial Machinery|Aug 05,2024Siemens AGDelivering strong and sustainable growthPlease see important disclosures on last page of reportWe upgrade our rating to“BUY”and upgrade the target price to 186.75 from 180 for

2、 Siemens for FY25 which implies an upside potential of 11.27%from the CMP of 167.84.We derive our target price based on an EV/EBITDA of 12.82x,along with a forward P/E of 16.87 and an adj.EPS of 11.07 for FY25.Our estimates are based on 1)Industry Analysis 2)Positive outlook for FY24 3)Stock Perform

3、ance 4)Diverstiture 5)Digital Transformation and 6)Boosting adoption of AIIndustry Analysis:The global industrial machinery market is experiencing robust growth,driven by increasing automation,urbanization,and a heightened focus on efficiency.Fueled by rising demand across sectors like automotive,fo

4、od and beverage,and pharmaceuticals,the market is projected to reach US$362.70 billion by 2031,exhibiting a CAGR of 5.6%.Advancements in technology,such as AI and 3D printing,are revolutionizing the industry,enabling the development of smart factories and eco-friendly machinery.The Asia-Pacific regi

5、on is spearheading this growth due to rapid industrialization.Key factors driving market expansion include the imperative to reduce operational costs,the surge in infrastructure development,and the growing emphasis on sustainable production practices.Positive outlook for FY24:Siemens maintains its o

6、verall FY24 outlook despite challenges.While the company expects continued profitable growth for its Industrial Business and overall revenue growth of 4-8%,the Digital Industries segment is facing headwinds due to extended destocking,leading to lower revenue and profit margin projections.Smart Infra