Signify: shares drop after strategy update

(CercleFinance.com) - Signify shares took a hit on Wednesday, down nearly 6%, after the Dutch lighting group updated its 2020 outlook and unveiled its strategic plans for the next three years.


For 2020, Signify said it expects comparable sales to decline by 13% to 13.5%, while its adjusted EBITA margin should be somewhere between 10.2% and 10.6%.

For the period 2021-2023, Signify expects yearly comparable sales growth of 0% to 5%, with adjusted EBITA margin of 11% to 13% by 2023, the company said.

"Looking ahead, we expect the headwinds facing our industry from the transition to LED to abate over the coming years," said CEO Eric Rondolat.

But UBS analysts, who have a "neutral" rating on the stock, said the mid-term targets were "just OK."

"Signify's new mid-term financial targets are OK but slightly less punchy than the IPO targets at the time," they noted.

Signify shares, which have risen by over 25% this year, fell 5.8% on Wednesday morning, while the wider market in Amsterdam was up 0.5%.

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