Philips
Note: This is a daily stock update and the information stands true as of 29/10/24, 09:00 CET.
Company Update:
Yesterday, Q3 sales came in 2.7% below consensus with low order intakes and the group cuts its FY Sales guidance on weak Chinese environment. Stock dropped 17% which seems excessive to my analyst. Indeed, he points out that
1/ Chinese headwinds are an industry wide issue and are transitory
2/ the company keeps improving its product line with a few FDA approvals for new products or enhancements of existing products and
3/ new partnerships will boost the groups sales and profit profile over the next few years.
In all, he believes the 17% drop in price yesterday is a good opportunity to enter the stock.
AlphaValue analyst's note on Philips Q3 results and subsequent buy opportunity
Expert Opinion:
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Company Update:
Yesterday, Q3 sales came in 2.7% below consensus with low order intakes and the group cuts its FY Sales guidance on weak Chinese environment. Stock dropped 17% which seems excessive to my analyst. Indeed, he points out that
1/ Chinese headwinds are an industry wide issue and are transitory
2/ the company keeps improving its product line with a few FDA approvals for new products or enhancements of existing products and
3/ new partnerships will boost the groups sales and profit profile over the next few years.
In all, he believes the 17% drop in price yesterday is a good opportunity to enter the stock.
AlphaValue analyst's note on Philips Q3 results and subsequent buy opportunity
Expert Opinion:
I like the call. The drop in share price means that Philips is back to more attractive valuation with PE 24 of 16x (down to 12.5x for our PE26). There is no need to rush in the name just right away but Philips is now a clear buy and hold stock in my opinion to play the expected recovery in the Chinese market. Remember that the Chinese market has been weak for months due to the anticorruption investigation in hospitals which led to a de facto freezing of any new orders. This also means that when this ends, the need for more machines will be massive and there will be a significant catch-up effect.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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