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FRANKFURT (dpa-AFX) - Positive analyst comments gave Siemens shares new momentum on Monday. They cleared an important hurdle in the chart that had blocked their recovery path for just over three weeks. The industrial group's shares gained up to 3.5 percent to 178.66 euros, breaking away from the 50-day line around which they had recently been hovering.

A study by Bank of America (Bofa), in which analyst Alexander Virgo recommended the share as a buy with a target price of 210 euros, was the main source of momentum. He thus believes that the share price could exceed the recent record high of almost 187 euros.

Virgo wrote that Siemens is in the process of bottoming out in the automation sector. After looking at key indicators, he expects a turnaround in the outlook for the Digital Industries division (industrial automation). The recent turmoil due to supply chain disruptions is subsiding. Furthermore: "Even if demand only improves slowly over the course of the year, the turnaround in orders for machine tools in Japan and Taiwan should mean an improvement for the hardware business over the next one to one and a half years."

The BofA expert is also confident with regard to Siemens' Smart Infrastructure division. "Demand remains high, particularly in the end markets for electrification and medium voltage," he wrote. The demand environment in the second quarter is likely to have remained robust and margins are expected to be at the upper end of the forecast range for the 2023/24 financial year.

With this improved outlook, the valuation of Siemens should also rise again, according to Virgo. He raised his estimates by up to five percent and is now slightly above the market consensus for the operating result for fiscal year 2025/26. He also attributes a higher valuation premium to Siemens shares compared to the industry.

In a recent industry study, the team of analysts led by Mark Fielding from the Canadian investment bank RBC also maintained Siemens as one of the favorites./ck/ag/jha/