Philips: Oddo confirms rating after results

(CercleFinance.com) - On Monday morning Philips reported its Q2 quarter results, which came in above expectations (adjusted EBITA +20%).


Following this publication, Oddo has confirmed its neutral rating on the share with a target price of 40 euros (current price: 43.4 euros).

Oddo notes that new orders have increased by 27%, driven solely by Connected Care (Patient monitoring and Respiratory Care) in response to COVID-19-related demands, while Diagnosis & Treatment recorded a double-digit decline.

Sales declined by 6%, while adjusted EBITA came in at 418 million euros (vs. consensus 344 million euros), bringing its adjusted EBITA margin to 9.5% (down 230 bps). Meanwhile, net profit reached 210 million euros, and FCF rose to 311 million euros (compared to 174 million euros in Q2 2019).

The group has confirmed its guidance for 2020, forecasting modest organic growth and an improvement in its adjusted EBITA margin. The consensus expects slightly less, anticipating organic growth of 1.6% and a 30-bp decline in its adjusted EBITA margin, Oddo adds.


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