BofA: Siemens Healthineers' Fiscal Q3 to Show Inflation Impact; Estimates, Price Objective Down
BofA Global Research expects Siemens Healthineers' (SHL.F) fiscal third-quarter performance to reflect inflation "hitting harder than expected," particularly in the healthcare technology company's imaging segment. "We expect +4.6% organic growth (-30bps vs cons.), which is slightly below the company's message of 5-6%. Challenging comps in Imaging will matter for growth (MSD) and inflation may bring margin down Q/Q (BofAe -30bps seq.). We expect strong quarter in PT, with AT advancing to HSD following launches, but margin down Y/Y due to tariff/inflation. We don't factor much improvement in Dx (-4% org.) with margin barely improving due to continuing weakness in China," analysts said in a Thursday note. "Overall, we stand -1.1% below consensus for sales and -4% for EBITA." As such, the research firm lowered its estimates for fiscal 2026 and 2027 by 6% and 12%, respectively. The revision reflects BofA's assumption of a high-single digits EPS growth next year. Consequently, the stock's price objective fell to 48 euros from 60 euros. "Potential catalysts ahead for the stock are 1) reset FY27 EPS expectations, 2) decision to discontinue the Dx business, 3) spin-off mid 2027. Buy.
BofA Global Research expects Siemens Healthineers' (SHL.F) fiscal third-quarter performance to reflect inflation "hitting harder than expected," particularly in the healthcare technology company's imaging segment. "We expect +4.6% organic growth (-30bps vs cons.), which is slightly below the company's message of 5-6%.
Challenging comps in Imaging will matter for growth (MSD) and inflation may bring margin down Q/Q (BofAe -30bps seq.).
We expect strong quarter in PT, with AT advancing to HSD following launches, but margin down Y/Y due to tariff/inflation.
We don't factor much improvement in Dx (-4% org.) with margin barely improving due to continuing weakness in China," analysts said in a Thursday note. "Overall, we stand -1.1% below consensus for sales and -4% for EBITA." As such, the research firm lowered its estimates for fiscal 2026 and 2027 by 6% and 12%, respectively.
The revision reflects BofA's assumption of a high-single digits EPS growth next year.
Consequently, the stock's price objective fell to 48 euros from 60 euros. "Potential catalysts ahead for the stock are 1) reset FY27 EPS expectations, 2) decision to discontinue the Dx business, 3) spin-off mid 2027.
Buy.