Siemens (SIEGn.F): Remaining OW but removing from AFL, the re-rating aspect of the call has now played out

J.P. Morgan remains Overweight on Siemens with a Dec-27 price target of €345 and unchanged estimates, but removes the stock from its Analyst Focus List. When Siemens was added to the AFL at OW in August 2025, the argument was that with the decade-long conglomerate discount versus peers all but gone, owning the stock required confidence that the company could sustainably outgrow peers on earnings and/or warrant a premium valuation. Siemens has since been one of the best performing large caps in coverage, earnings have been strong, and the now-realised c10% relative valuation premium (from a c10% relative discount) versus the composite Siemens index is justified. The broker remains OW and c4% ahead of lfl consensus for FY27, but with the premium now in place and management likely to guide to consensus for FY27 in the first instance, AFL status is removed. Schneider's announced acquisition of PTC, while strategically logical, is viewed skeptically on price and in effect ratifies Siemens'