Conglomerate Siemens AG (NYSE: SI) has operations in the industrial automation, control systems, lighting products, heating and ventilation systems, power distribution / transmission equipment, and transportation systems fields.

Readers of this space know that the investment philosophy favors large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And along this line Siemens AG is worth an evaluation.

That's quite a breadth of operations, and the company has a diagnostic/imaging unit and an energy-related products unit, as well, but analysts like the fact that Siemens has streamlined it businesses in recent years. Analysts see 10-14% revenue growth in F2008, after 8-10% growth in F2007, and a healthy overall revenue mix.

Further, 20% of Siemens operations are Asia / Middle East / Russia-focused, where margin improvement is expected. The Reuters F2008/F2009 EPS consensus estimates for SI are $8.59/%10.30.

The risks? Analysts are watching for a possible decrease in capital spending in Europe, and other signs of regional economic sluggishness.

The First Call mean rating for SI is: Buy. [4 firms.] Mean 2008 target: $169.00. [high: $199, low: $131.]

Stock Analysis: Siemens AG is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from SI's shares. Sell / Stop Loss if you were to purchase shares in this company: $84.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.