Philips: Commerzbank initiates coverage with 'buy'
(CercleFinance.com) - Commerzbank has initiated its coverage of the Philips stock with a "buy" rating and a target price of 40 euros, citing the electronics conglomerate's "successful transformation" into a healthcare company.
In a research report sent to clients, the brokerage firm says the stock's current valuation leaves "room for upside."
Despite the Dutch group now generating 56% of sales in medical technology, targeting professional healthcare customers, this is not reflected in the share's price, which is trading at a discount of 20% compared to European medical technology peers, Commerzbank points out in the report.
The broker also expects the firm's margin expansion to boost earnings growth to well over 10% from 2018.
Copyright (c) 2017 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.
In a research report sent to clients, the brokerage firm says the stock's current valuation leaves "room for upside."
Despite the Dutch group now generating 56% of sales in medical technology, targeting professional healthcare customers, this is not reflected in the share's price, which is trading at a discount of 20% compared to European medical technology peers, Commerzbank points out in the report.
The broker also expects the firm's margin expansion to boost earnings growth to well over 10% from 2018.
Copyright (c) 2017 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.