Analyst Max Yates of Morgan Stanley maintained a Hold rating on Signify NV, retaining the price target of €23.00.
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Max Yates has given his Hold rating due to a combination of factors influencing Signify NV’s recent performance. The company’s second-quarter sales were in line with expectations, but there was a modest shortfall in adjusted EBITA, missing consensus by 4%. This miss was primarily attributed to increased indirect costs from reinvestments in marketing and sales channels, which are expected to yield benefits in the latter half of the year.
Despite the challenges, Signify NV has reiterated its full-year guidance for positive organic growth, excluding conventional segments, indicating a need for accelerated growth in the second half of 2025. The EBITA margin guidance has been adjusted slightly downward, yet it remains above current consensus at the midpoint. These factors suggest a cautious outlook, as the market may question the feasibility of the implied improvements, justifying the Hold rating.