In a report published today BofA Merrill Lynch Upgraded the rating on Siemens AG (SI) to Buy from Neutral with a price target of $ “We are upgrading Siemens from Neutral to BUY. Our price objective (PO) remains Eur106, implying upside potential, plus a >3% dividend yield. We downgraded Siemens in early Jan 14 when the stock was a bit higher and the upside looked more limited, but at these levels (all in PE of FY14 and  FY15,a 15-20% sector discount), we think the shares offer an attractive risk/reward balance.” BofA Merrill Lynch said “We think the upside will be driven by (i) the ongoing cost and portfolio restructuring story under CEO Joe Kaeser, which we think will be taken to the next phase at the May 8 capital markets day, (ii) cyclical and structural growth opportunities in automation markets, which we think the market underestimates, (iii) support from a Eur4bn share buy-back to be executed over the next 18 months and (iv) a strong balance sheet allowing Siemens to enhance its portfolio and earnings” it added Shares of Siemens AG (SI) closed at $ on Friday.
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