BofA Forecasts 'Strong' FY27 Outlook from Siemens; Buy Rating Kept

07:51 AM EDT, 09/30/2026 (MT Newswires) -- BofA Global Research maintained its investment case on Siemens (SIE.F), saying it expects the German technology group to provide a "strong" fiscal 2027 guidance during its fiscal 2026 results. "We see a solid end to the year at Siemens with continued strong demand in Data Centres (BofA est SI 4Q orders EUR7.9bn) and continued positive demand trends in automation and software (BofA est 0% organic in 4Q DI orders on very tough comp and 7% organic revenue growth). The focus of the day though will be 2027 guidance, where we see FY27 9% industrial organic sales growth (inc SHL) vs. Cons at 8%," according to a Wednesday note. For 2027, the research firm expects the company to set an organic growth guidance of 6% to 9% for digital industries, compared with Visible Alpha consensus of 8% and BofA forecast of 7%. Meanwhile, organic growth outlook for smart infrastructure is projected to come in between 9% and 11 %, versus the expected 11% and BofA's 14% estimate. "While order growth should normalize after 2026, elevated backlogs & hyperscaler GW installs suggest the cycle has further to run. The market underestimates the step-up in org growth as orders convert to revenues in our view," analysts said, adding that growing software business is anticipated to drive digital industries margin expansion in 2027. Ahead of the earnings report scheduled for Nov. 12, BofA reiterated its buy rating and price objective of 330 euros on the stock. The research firm also ticked down its fiscal 2027 EPS forecast to $7.08 from $7.17, while marginally lifting its 2028 EPS estimate to $7.29 from $7.25.