Berenberg Downgrades Siemens Healthineers to Hold Amid 'Limited' Upcoming Catalysts

Berenberg downgraded Siemens Healthineers' (SHL.F) rating to hold from buy, saying the German healthcare technology company faces "more overhangs than catalysts" over the next 12 months. "While we acknowledge Healthineers looks cheap, trading on c11x EV/EBITDA for 2025/26E, we struggle to see a catalyst for a re-rating in 2026. The company has two major overhangs: 1) the spin-off from Siemens AG [SIE.F], with the decision by Siemens AG to only undertake a partial spin-off (reducing its stake by less than half) and the drawn-out process (the latest timing is Q1 2027) likely to continue weighing on the shares; and 2) the weak performance in Diagnostics, which casts doubt on the company's ability to spin-off or sell the business, leaving it as a drag on group growth and profitability," analysts wrote in a note published Friday. "This is compounded by the fact that we see limited potential catalysts for earnings upgrades to support a rerating." As such, the research firm slashed the price target to 39 euros from 54 euros, noting that it currently sees few reasons to "proactively" own the company's shares. EPS and EBIT forecasts for fiscal years 2026 through 2028 were also.