Siemens with 13 percent opportunity
Siemens shares have recently risen sharply following good figures and positive company news. With bonus certificates with a cap, investors can even generate high returns if the upward trend is followed by a price correction.
After a long decline in the share price, which reached its temporary low of €119.48 on October 26, 2023, Siemens shares are currently experiencing a strong upward trend, which has seen the share price rise to its current level of €150.40. Most recently, the excellent figures and positive forecasts boosted the Siemens share price.
Due to the convincing figures in terms of order intake, sales and growth, experts reiterated their buy recommendations for Siemens shares with price targets of up to 222 euros (Goldman Sachs).
The investment idea
Following the positive comments from analysts, an investment in Siemens shares, which are still classified as highly undervalued, could still be interesting for yield-oriented investors, even at the higher price level. Anyone wishing to significantly reduce the risk of buying shares directly and still achieve high returns could consider investing in a bonus certificate with a cap and a very high safety buffer.
Apart from dividend payments, private investors can only achieve positive returns when buying shares directly if the share price rises. Compared to buying shares directly, bonus certificates with and without a cap offer investors opportunities for annual returns in the double-digit percentage range not only if the share price rises, but also if the price stagnates or falls.
How it works
If the Siemens share never touches or falls below the barrier of EUR 112 by the certificate's valuation date, the bonus certificate will be redeemed on December 30, 2024 at the bonus level of EUR 168.
The key data
The HSBC bonus certificate with cap (ISIN: DE000HS2A8K1) on Siemens shares has a bonus level and cap at 168 euros. The cap defines the maximum redemption amount of the certificate. The barrier activated until the valuation date, December 20, 2024, is EUR 112. At the Siemens share price of 150.40 euros, investors could buy the certificate at 148.15 euros. For investors, buying the certificate is even cheaper than buying the share directly.
The opportunities
As the certificate is currently available at 148.15 euros, it enables a gross return of 13.40 percent in 13 months if the share price never falls by 25.53 percent to 112 euros or below by the valuation date.
The risks
If the Siemens share touches the barrier at 112 euros and the share is quoted below the cap on the valuation date, the certificate will be redeemed at the closing price of the share determined on the valuation date. If this is determined to be below EUR 148.15, the certificate investment will result in a loss.
This article does not constitute a recommendation to buy or sell Siemens shares or investment products on Siemens shares. No liability is assumed for the accuracy of the data.
- An astute investor seeking stock tips might consider purchasing Siemens shares, given their recent upward trend and positive company news, as advised by financial experts who have reiterated their buy recommendations for Siemens with price targets reaching up to 222 euros.
- Siemens' financial investment potential can be further explored through bonus certificates, such as the HSBC one with a cap of 168 euros, providing investors with the opportunity for high returns even if the stock stagnates or experiences a price correction.
- Consumers interested in diversifying their assets might find these bonus certificates appealing, as they can potentially generate annual returns in the double digits, unlike direct stock purchases, which only yield returns if the stock price increases.
Source: www.ntv.de
