Thu Sep 26 12:40:39 UTC 2024: ## Siemens Healthineers Downgraded by UBS Amidst China Market Challenges

**Frankfurt, Germany** – Investment bank UBS has downgraded Siemens Healthineers AG (ETR:SHLG) from a “buy” to a “neutral” rating, citing concerns about the company’s medium-term growth prospects. The downgrade stems from mounting challenges in the company’s Chinese market, which has historically been a major growth engine for Siemens Healthineers.

UBS analysts point to the increasing competitive pressure from emerging Chinese players like United Imaging and Mindray, who are expected to capture a significant market share from established Western companies like Siemens Healthineers. While Siemens Healthineers boasts strong product innovation, the analysts believe the Chinese market will be at best flat in the near term and deliver only 5-10% growth thereafter, even with anticipated economic stimulus in 2025.

This subdued forecast for China contrasts sharply with the more optimistic projections held by market consensus. UBS believes the unique circumstances in the Chinese ecosystem will lower the growth rate for Western players in the imaging market from 5% to 3%.

As a result of these challenges, UBS has revised its financial forecasts for Siemens Healthineers, expecting group revenues to fall by 1% to 3% over the 2025-2028 period, leading to a corresponding drop in adjusted earnings per share by 2% to 6%. The brokerage has also cut its price target for Siemens Healthineers to €51 from €56.

Despite the downgrade, UBS maintains that Siemens Healthineers remains a high-quality business with strong market positions, particularly in imaging and other medical technology verticals. However, the company’s growth potential is now seen as more restrained due to the headwinds in China and the broader competitive landscape.

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