On Friday, the German industrial conglomerate Siemens experienced a notable increase in its stock price, rising over 1%. This gain came as investors analyzed the company’s latest earnings report and two analysts adjusted their price targets upwards. Siemens’ performance outpaced the S&P 500, which remained largely unchanged on that day.
The boost in price targets followed the Thursday release of Siemens’ earnings report, which showed a 3% year-over-year revenue growth, reaching 18.4 billion euros ($19.2 billion) in the first quarter of its fiscal 2025. Although orders increased across most of its industrial segments, except for Mobility, the latter’s decline contributed to an overall 7% decrease, bringing total orders to just above 20 billion euros.
Siemens also reported a 52% increase in net income, totaling nearly 3.9 billion euros for the period, or 4.86 euros per share, compared to 2.5 billion euros in the first quarter of fiscal 2024. Reuters noted that analysts had anticipated revenues to slightly exceed 18 billion euros, with the foundational industrial segment expected to generate 2.4 billion euros. The company surpassed these projections, earning 2.5 billion euros in this segment.
CEO Roland Busch expressed confidence in Siemens’ resilience, suggesting the company could thrive despite the politically motivated tariff regimes and possible countermeasures, which appeared to reference policies from the Trump administration.
Following the robust quarterly performance, two analysts revised their price targets for Siemens’ stock. Morgan Stanley’s Max Yates increased his target to 240 euros per share, an increase of 5 euros, while RBC Capital’s Mark Fielding raised his target from 220 euros to 245 euros. Both analysts maintained their buy recommendations.
