Philips: Jefferies upgrades stock

(CercleFinance.com) - Jefferies has upgraded Philips shares from 'underperform' to 'hold', with a target price raised from E23.
5 to E25 (cp: E25, +2.2%), after its valuation fell, due to the Dutch group's difficulties encountered in China.

Organic sales growth turned negative in the third quarter, and with order intake surprisingly back in negative territory (-2%), Philips has cut its sales forecasts for 2024, the broker says.

After the share price's plunge, analysts believe that the valuation (20% discount to Siemens Healthineers) better reflects the short-term challenges, Jefferies believes, which is therefore upgrading the medical technology supplier's stock.


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