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Siemens – spin-off and new boss give wings!

On October 1st, 2020, COO Roland Busch took over the CEO duties from CEO Joe Kaeser. From February, the trained physicist will manage the Munich-based group entirely on his own. Since taking office in the summer of 2013, Kaeser has restructured the Munich conglomerate, sold parts of the company and spun off some units. The medical technology division Siemens Healthineers has been on the stock exchange for two years. Siemens still holds 85 percent here. Siemens Energy followed at the end of September 2020. The parent company now holds 35 percent of this division. This means that the areas of digital industries with automation technology, smart infrastructure with industrial software and mobility with rail technology remain in the group.

Kaeser does not (yet) ignite a course fireworks with his conversion. The share price has risen by around 50 percent since mid-2013, performing similarly to the DAX®. According to Thomson Reuters, the majority of analysts are currently optimistic about the share in the medium term. On the one hand, the experts are confident about the financial solidity and the strong global market position in order to benefit from the increasing global automation and digitization of industry. In the first nine months of the 2019/20 financial year (ended September 2020), sales only shrank by one percent and incoming orders only fell by 9 percent. Thanks to the cost-cutting measures introduced in 2019, Siemens was nevertheless able to post a double-digit EBITDA margin during the period. With the IPO of the energy division, the conglomerate discount could fall. The budding boss Busch could take credit for Kaeser’s measures. Nevertheless, there are still some construction sites. An end to the corona crisis is not yet in sight. In addition, the future of the mobility division is still open. In 2019, a merger of the train division with Alstom failed.

Chart technical outlook: Siemens

Resistance marks: 107.80 / 110.75 EUR

Support marks: 101 / 104.80 / EUR

Siemens shares have been on an upward trend since March this year. In the past few weeks the paper was in a short-term consolidation and tested the 38.2% retracement line at EUR 104.80. There are currently signs of a rebound. Further buying impulses up to EUR 110.75 could follow above EUR 107.80. On the downside, Siemens shares find broad support between EUR 101 and 104.80.

Siemens in EUR; Daily chart (1 candle = 1 day)

Observation period: May 29, 2020 – October 6, 2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de

Siemens in EUR; Weekly chart (1 candle = 1 week)

Observation period: 07/10/2014 – 07/09/2020. Historical considerations are not reliable indicators for future developments. Source: onemarkets.tradingdesk.de

Investment opportunities

Bonus cap certificates on Siemens shares for speculation that the stock will move sideways or moderately upwards

UnderlyingWKNSelling price in EURBarrier in EURCap (upper price limit) in EURFinal valuation day
SiemensHR22VG111.6685.00120.00March 19, 2021
SiemensHR22VS118.4280.00130.0006/18/2021

Source: HypoVereinsbank onemarkets; Status: October 6, 2020; 3:38 pm

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The contribution Siemens – spin-off and new boss inspire! first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).

Author: Richard Pfadenhauer

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