Philips: UBS still on hold

(CercleFinance.com) - The analyst believes that Q3 results are disappointing, with the group reducing its outlook.


Following this publication, UBS confirms its Neutral recommendation on the stock, with an unchanged target of E26.5.

Q3 revenues fell by 3%, and margins are also weak when royalty income is taken into account. Forecasts for 2024 have been reduced, as uncertainty regarding China intensifies and is expected to persist, UBS says.

On the occasion of its quarterly publication, the Dutch group revised its targets for FY 2024, to reflect deteriorating demand in China.

It now anticipates LFL sales growth of 0.5% to 1.5%, an adjusted EBITA margin of around 11.5% (upper end of its range), and FCF of around E0.9bn (lower end of its range).


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