Bank of America Securities analyst Julien Ouaddour has reiterated their neutral stance on 0LNG stock, giving a Hold rating yesterday.
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Julien Ouaddour’s rating is based on a combination of factors that reflect both opportunities and challenges for Koninklijke Philips N.V. The company’s recent Q2 results have shown some positive developments, particularly in the Diagnosis & Treatment segment, which could alleviate concerns about US hospital capital expenditures. However, despite these positive signals, Ouaddour believes that execution risks remain, especially given the significant re-rating of Philips’ shares by 20% since mid-June, which now trade at a forward P/E ratio of approximately 17x.
Furthermore, while the outlook for China remains optimistic with expectations of mid-single-digit growth, there are uncertainties regarding hospital capital expenditures, as hospitals await clarity on stimulus measures before committing to orders. Additionally, Philips is facing margin pressures due to increased tariff headwinds expected in Q3. Although new product launches in the Personal Health segment are gaining traction and consumer spending remains stable, these factors contribute to a balanced risk/reward profile, justifying the Hold rating until further clarity is achieved at the next Capital Markets Day in February.
According to TipRanks, Ouaddour is a 4-star analyst with an average return of 22.8% and an 85.71% success rate. Ouaddour covers the Healthcare sector, focusing on stocks such as Fresenius Medical Care AG & Co. KGaA, Alcon, and Koninklijke Philips N.V..