Philips: Bank of America still a buyer
(CercleFinance.com) - Analysts at Bank of America remain buyers of Philips, as they expect large scale healthcare investment in Europe and Asia once the COVID-19 dust has settled.
In a note to clients, BofA said it expects the Dutch health technology company to benefit from its businesses in diagnostic imaging, remote healthcare and healthcare software.
In the nearer-term, the US investment bank sees around 8% potential EBIT upside from the group's exposure to the areas of critical care, ventilators, and computed tomography, it added.
As a result, Bank of America has raised its target price for the share from 38 euros to 43 euros, citing structural margin growth opportunities, solid demand profile and sound liquidity.
Earlier today Philips offered to help practitioners and hospitals manage the increased patient flows resulting from the corona outbreak through a telehealth solution that allows the remote monitoring of COVID-19 patients that are in quarantine at home.
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