UPDATE: Morgan Stanley Upgrades Siemens to Overweight on Disposals and Margin Gains

Morgan Stanley upgraded Siemens

from Equal-weight to Overweight. Morgan Stanley analyst Ben Uglow noted, "The market may be too sceptical on the potential to improve returns via selective disposals and the ‘Siemens One' cost program. We are optimistic on both counts and see important catalysts emerging, for the first time in two years. … We identify potential disposals with combined revenues of €21.9bn, EBIT of €1.1bn and a valuation range of €6.0bn to €8.3bn. If achieved, these would drive higher RoCE and improve earnings quality." Siemens closed at $109.47 on Tuesday.