Philips: Credit Suisse raises target price.
(CercleFinance.com) - Credit Suisse raises target price on Philips' stock to 36 euros from 34 euros and reiterates its "outperform" rating, considering the group's personal health unit as a "hidden gem in the portfolio.
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After taking a "deep-dive" into the division, the brokerage firm has concluded that the business is undervalued by the market and sees further upside for margins.
"We think personal health has room for further margin expansion rather than the 2016 level of 15.6% representing a peak," the broker said.
"In health and wellness, the closest peer, Procter and Gamble healthcare (Oral-B) does 25% margins," it pointed out.
Credit Suisse also thinks that Philips' consumer unit is an "above average quality business" within the group.
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.
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After taking a "deep-dive" into the division, the brokerage firm has concluded that the business is undervalued by the market and sees further upside for margins.
"We think personal health has room for further margin expansion rather than the 2016 level of 15.6% representing a peak," the broker said.
"In health and wellness, the closest peer, Procter and Gamble healthcare (Oral-B) does 25% margins," it pointed out.
Credit Suisse also thinks that Philips' consumer unit is an "above average quality business" within the group.
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.