Seeking Alpha: Siemens Has Changed The Tone, But Can It Deliver?

For quite some time, the story on Siemens (OTCPK:SIEGY) was one of almost perpetual disappointment and questions as to when management would get it together and deliver on the underlying potential of a business that has leadership in multiple attractive markets. With management's strategy update in May, though, it seems like a lot of sell-side analysts have come back on side with Siemens and are looking for good revenue and margin progression as management takes a more realistic view of costs and its true core markets.

I'm still a bit more skeptical. The shares of Siemens have kept up with peers like General Electric (NYSE:GE) and Rockwell Automation (NYSE:ROK) over the past year, while outdistancing those of ABB (NYSE:ABB) and Schneider (OTCPK:SBGSY) as most of the whole sector trails Honeywell (NYSE:HON). I do like Siemens' focus on electrification, automation, and digitalization, but it takes some pretty ambitious assumptions to get near the price targets floated by bullish sell-side analysts. While I'm no Siemens-hater by any stretch, I just don't see the great bargain that others seem to feel is available today.

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Siemens Has Changed The Tone, But Can It Deliver?