After it spun-off from Siemens, OSRAM’s lower margins and trades were at half the multiples of its peers on half of the margin, but is expected to have a positive outlook in coming year, according to an analysis on Seeking Alpha.

The reason behind OSRAM’s stocks low trade is because the company spun off from Siemens just a year ago. Analysts have been critical to OSRAM’s lower-than-industry-median margins and OSRAM share price has dropped from €50 to €30.

OSRAM’s margin improvement program (OSRAM Push) is delivering so far and has a clear path to send the company’s revenue reaching industry averages, while the stock price might see four times increase to €120 in several years.

OSRAM’s gross margin has recovered to pre-spin off, but EBIT and NI margins have not, mainly due to non-COGS costs. OSRAM Push is launched to fix them and comparison of 2014 and 2013 has shown significant improvement in margin across the board.