0904 GMT - Siemens's soft backdrop in automation remains a concern, despite the solid set of fourth-quarter results, Quilter Cheviot analyst Jarek Pominkiewicz says in a research note. The German technology conglomerate said that while automation orders in China have stabilized, there has been a sequential weakening in Germany. Despite the limited visibility, the analyst remains confident in a recovery of the digital industries business when inventory destocking concludes. Despite this still-soft backdrop in discrete automation and weak industrial momentum in Germany, orders declined by only 6% year-on-year and were 4% ahead of consensus, the analyst says. Siemens currently trades at a significant discount to other European industrial names, which presents an attractive opportunity for investors, considering the company's strong fundamentals and growth prospects, Pominkiewicz says. Shares trade 7.1% higher at 192.12 euros. (nina.kienle@wsj.com)
(END) Dow Jones Newswires
November 14, 2024 04:05 ET (09:05 GMT)
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