Jefferies downgraded Siemens to hold from buy following a significant second-quarter margin miss.
Earnings before interest and tax (EBIT) missed analyst estimates by 31.7%. The EBIT margin dropped to 7.6% from 10.7% in the previous year. Management attributed the gross margin decline to rising copper and silver costs alongside a weaker Indian rupee.
Jefferies reduced its earnings per share estimates for fiscal year 2026 by 34%. The brokerage also cut fiscal year 2027 earnings per share projections by 23%. Analysts expressed concern that planned price increases may fail to offset rising input costs.
The revised 12-month price target stands at 4,000 rupees. This target offers minimal upside compared to the previous day's closing price.