UBS downgraded Siemens Healthineers from “buy” to “neutral,” citing concerns over medium-term growth prospects in China, a key market for the company. Increased competition from local firms like United Imaging and Mindray, along with a subdued economic outlook, has raised challenges for Siemens’ imaging division, which has been a major growth driver. UBS predicts the Chinese market will remain flat in early 2025 and grow only 5-10% thereafter. As a result, UBS lowered its revenue forecast for Siemens Healthineers by 1-3% for 2025-2028, reduced the price target to €51 from €56, and expects adjusted earnings to fall by 2-6%. Despite the downgrade, UBS acknowledges Siemens’ strong product innovation and solid market position but sees limited growth potential due to competition and market headwinds in China.
