UPDATE: Deutsche Bank Downgrades Siemens to Hold on Deteriorating Industrial Outlook
Deutsche Bank downgraded its rating on Siemens (NYSE: SI) from Buy to Hold.
Deutsche Bank commented, "We think that the industrial outlook is getting gloomier. The September IFO manufacturing expectations fell to a new four-year low of 19.6, which suggests that German industrial production is likely to contract in the coming months. We are cutting our net income forecasts by 8-9% but DB EPS falls by less than this (5-6%) due to the €3bn share buyback. The main drivers are weaker macro assumptions and higher corporate costs. FY2013 guidance is likely to be cautious; we expect €5.0-5.5bn, i.e. minimal growth over FY2012."
Siemens closed at $100.45 on Wednesday.
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