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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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
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).
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.