Bernstein Forecasts EPS Growth Headwinds for Siemens Healthineers; Price Target, Estimates Revised

05:51 AM EDT, 08/05/2026 (MT Newswires) -- Bernstein adjusted its price target and earnings forecasts for Siemens Healthineers (SHL.F), noting the medical technology company's fiscal third-quarter results and anticipated EPS growth pressures heading into fiscal 2027. "Healthineers outlined several EPS challenges next year, including tax rate normalization, higher refinancing costs, and incremental standalone costs associated with separation from Siemens. Together, these factors could create an approximately EUR0.10-0.15 EPS headwind. The company also faces ongoing pressure from cost inflation. Nevertheless, tariff and other mitigation measures, continued premium technology adoption in Imaging, and ongoing momentum in Precision Therapy provide meaningful offsets and support continued earnings growth beyond 2025/26E. We forecast +5% adj. EPS growth from our ex-tariff refund 2025/26E adj. EPS of EUR2.24," according to a Tuesday note. In the company's latest earnings report, Siemens Healthineers reduced its fiscal 2026 comparable revenue outlook to 3.5% to 4% from the previous target of 4.5% to 5%, due to ongoing diagnostics weakness. On the flip side, a one-off US tariff refund windfall prompted the company to boost its adjusted basic EPS guidance to between 2.35 euros and 2.45 euros from the previous range of 2.20 euros to 2.30 euros. Against this backdrop, the research firm lowered its price target to 44.50 euros from 45.70 euros and affirmed its outperform rating. "We have updated our model for results, FX and the latest management commentary. Our 2026E EPS is up +6%, reflecting the positive impact of the tariff refund more than offsetting a weaker Diagnostics and topline outlook. Our 2026/27E adj. EPS is down -8%, reflecting the additional EPS headwinds as well as cost inflation," the note said.