RHHBY - Siemens Healthineers Expanding The Business But Self-Help Is Still Needed
- Siemens Healthineers' proposed acquisition of Varian still makes sense, even if the market hasn't loved it, and will add a complementary quality growth driver to the business.
- After several years of underperformance and share loss, the diagnostics business needs a concerted turnaround effort, and the new Atellica platform won't do it all on its own.
- The imaging business is a top-quality operation, with #1 or nearly-#1 share in most major markets, strong margins, and low-to-mid-single-digit growth potential.
- Valuation on Siemens Healthineers is okay but not compelling at today's price, but the quality of the imaging business and turnaround potential in diagnostics are worth watching.
For further details see:
Siemens Healthineers Expanding The Business, But Self-Help Is Still Needed