e Siemens Stock: All-Time High and Strong Year-End Rally

Last Updated: 19. Dezember 2023By

The Siemens stock has put in an impressive performance on the stock exchange over the last few weeks, adding around 38% since the end of October. At the end of last week, the paper reached a new all-time high of nearly 168 euros and is currently trading just below that (as of December 19, around 12 noon).

The strong year-end rally was mainly driven by Siemens‘ record year and the healthy outlook for the current business year 2022/2023. In addition, the Siemens stock is still not overvalued in light of the figures. Now the DAX company has once again shifted shares of the loss-making Siemens Energy and further reduced the stake.

Siemens reduces stake in Siemens Energy to 17.1 percent. Already a few months ago, Siemens took a similar step and transferred shares of Siemens Energy to its own pension fund. Now another 8 percent has been transferred to the employee fund, so that Siemens is still involved in the former Siemens Energy department with 17.1 percent.

Siemens Energy continues to struggle with significant problems at its Spanish subsidiary Gamesa and now requires state guarantees in the billions – the former parent company Siemens is therefore reducing its shares for good reason. At the same time, the pension assets of Siemens are further strengthened by the transfer of the shares.

Siemens stock with impressive rally Focusing on the core business is proving to be a sensible step for Siemens at the moment. Just a few weeks ago, the DAX company presented its record figures for the business year 2022/2023. Sales rose by around 11 percent to 77.8 billion euros, while net profit almost doubled to 8.5 billion euros.

Analysts are also optimistic about the Siemens stock. In recent weeks there have been buy recommendations and even new price targets. As recently as this week, UBS, for example, raised its price target from 167 to 200 euros – a potential price increase of around 20 percent.

Strong business figures, good prospects, at least a fair valuation and a current dividend yield of just under 3 percent all speak in favor of the Siemens stock. The recent rally in the Siemens stock is based on solid grounds and new all-time highs are conceivable in the coming quarters.