Watching, waiting. Upside to 2027 consensus, but the DI story is not clear cut. Stay EW.

Research evidence excerpt

Watching, waiting. Upside to 2027 consensus, but the DI story is not clear cut. Stay EW.

Idea

July 20, 2026 04:00 AM GMT

Morgan Stanley & Co. International plc+MSiemens | Europe Max R Yates

Equity Analyst

Watching, waiting. Upside to Max.Yates@morganstanley.comSara Chemello +44 20 7425-1917

Research Associate

Sara.Chemello@morganstanley.com +44 20 7425-2931

2027 consensus, but the DI Harry Stephenson

Harry.Stephenson@morganstanley.com +44 20 7425-0859

story is not clear cut. Stay EW. Sam Crean

What’s Changed Sam.Crean@morganstanley.com +44 20 7677-1983

Siemens (SIEGn.DE) From To Siemens (SIEGn.DE, SIE GY)

Price Target €270.00 €276.00

Capital Goods | Germany

Stock Rating Equal-weight

Siemens' continues on a path of portfolio simplification, but Industry View In-Line

there are factors out of their control such as software disruption PriceShr price,targetclose (Jul 17, 2026) €276.00€264.55

debates which adds complexity to the equity story. Bottom line, 52-Week Range €284.65-198.00 Mkt cap, curr (mn) €205,044

EPS momentum is positive, but we stay EW, as much of the Net debt (09/26e) (mn)* €41,469

valuation gap has closed versus global peers. * = GAAP or approximated based on GAAP

Fiscal Year Ending 09/25 09/26e 09/27e 09/28e

Key Takeaways Sales(€mn)**/ Revenue 78,914 84,026 92,518 99,719

EBITDA (€mn)** 12,984 14,596 17,503 19,760

We stay EW on Siemens. We raise EPS estimates, our 2027 EBIT is +4.4% vs EPS (€)** 10.43 11.46 14.12 16.27

consensus, and our new target price is €276 (from €270). Prior EPS (€)** - - 13.74 15.79

ModelWare EPS (€) 9.63 10.56 13.21 15.36

Key positives: SI orders are underpinning a revenue growth acceleration into P/E** 22.0 23.1 18.7 16.3

DPS (€) 5.35 5.72 6.13 6.55

2027, and we also see upside to Digital Industries margin for 2027.