In a report released today, Julien Ouaddour from Bank of America Securities reiterated a Hold rating on Koninklijke Philips N.V. (0LNG – Research Report), with a price target of €27.00.
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Julien Ouaddour has given his Hold rating due to a combination of factors impacting Koninklijke Philips N.V.’s recent performance and future outlook. The company’s fourth-quarter results for fiscal year 2024 fell short of expectations, with sales slightly below consensus and an organic growth rate lower than anticipated. A significant decline in the Chinese market, particularly affecting the Personal Health and Diagnosis & Treatment segments, contributed to this underperformance.
Looking ahead, Philips’ guidance for 2025 appears conservative, especially regarding its expectations for the Chinese market, which may either indicate cautious management or potential market share losses. The company anticipates modest organic sales growth and a marginal improvement in EBITA margins, which are slightly below consensus estimates. These factors, combined with the challenges in maintaining market competitiveness, particularly against peers like Siemens Healthineers, justify the Hold rating as the asset is considered fairly valued at present.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a €24.70 price target.