Siemens Shares Test Support as Markets Weigh Analyst Upgrades Against Valuation

Siemens AG shares (ETR:SIE)  are 0.78% lower this morning at €249.10, as markets test key support levels following a failed attempt to sustain prices above the €260 threshold.

The pullback comes despite a wave of bullish analyst revisions that have lifted price targets significantly in recent sessions, highlighting a tension between fundamental optimism and technical caution.

The German industrial conglomerate has attracted renewed attention from major investment banks, with Citi raising its price target to €335 from €290 while maintaining a Buy rating on the shares. JPMorgan analyst Phil Buller followed suit, increasing the firm's target to €325 from €300 and keeping an Overweight rating.

These latest upgrades represent substantial upside potential of between 30% and 34% from current levels, reflecting confidence in Siemens' strategic positioning and earnings trajectory.

The optimism from analysts stems from robust recent financial performance.

Siemens raised its earnings-per-share guidance for fiscal 2026 to a range of €10.70 to €11.10, up from the previous €10.40 to €11.00 forecast. The Digital Industries division has emerged as a particular bright spot, delivering substantial profit increases driven by automation and software businesses securing large-scale contracts. Group revenue climbed 8% year-over-year to €19.14 billion on a comparable basis, while orders surged 10% to €21.37 billion, demonstrating strong demand across the company's portfolio.

However, not all analysts share the bullish sentiment. Bernstein downgraded Siemens to Market Perform from Outperform, noting that the company's valuation has shifted from a historical discount to a record premium relative to peers. The firm suggested that much of the positive momentum has already been priced into the shares, limiting near-term upside potential. RBC Capital Markets echoed this caution, downgrading to Sector Perform from Outperform, citing the stock's recent rally as a constraint on further gains.

The divergence in analyst views appears to be playing out in price action. Markets pushed Siemens above €260 earlier this month, but the inability to hold those gains suggests profit-taking may be underway. The current test of support around €250 will be critical in determining whether the stock can consolidate recent advances or faces further downside pressure.

From a technical perspective, the failure to maintain levels above €260 raises questions about momentum sustainability. Markets appear to be reassessing whether the company's strong operational performance justifies its current valuation multiple, particularly given concerns raised by some analysts about premium pricing.

The conflicting signals present a nuanced picture for markets. On one hand, Siemens continues to deliver solid financial results with improving guidance and strong order intake across its divisions. On the other, the stock's valuation has reached levels that some analysts view as stretched, potentially limiting the scope for multiple expansion even as earnings grow.