Morgan Stanley analyst Max Yates maintained a Hold rating on Signify NV today and set a price target of €23.00.
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Max Yates has given his Hold rating due to a combination of factors affecting Signify NV’s financial outlook. The company’s recent quarterly results were slightly below market expectations, leading to a downward revision in the full-year guidance for FY25. This revision suggests a decrease in expected EBITA, with projections indicating a potential underperformance of the stock in the mid-to-high single digits.
Signify NV is facing challenges such as weaker demand in the US market and a significant slowdown in its OEM business. Additionally, the company is experiencing gross margin compression due to increased manufacturing costs and pricing pressures, particularly in Europe. These factors contribute to a lack of visibility regarding the company’s recovery trajectory, prompting a cautious approach with a Hold rating.
In another report released on October 18, TR | OpenAI – 4o also downgraded the stock to a Hold with a €24.50 price target.