Philips: Oddo disappointed by Q4 publication
(CercleFinance.com) - As Philips this morning reported Q4 organic growth of +5.
5% - which exceeds expectations - Oddo BHF says that it is actually disappointed by this publication.
The analyst notes that most of this pleasant surprise comes from the "other" division, while the branch "Personal Health" division has published a "mixed" quarter, while CCHI disappoints. The analyst says that the “other” division has benefited from almost doubling its sales, with an adjusted EBITA of 57 million euros (against -7 million euros expected by the consensus and -24 million euros in Q4 2017), thanks to the payment of royalties from Signify. However, when adjusted for this item, EBITA would have been over 5% less than expected, Oddo BHF points out.
The broker believes that the group's targets for 2017-2020 (organic growth of 4%-6% p.a., 100 bp annual increase in its adjusted EBITA margin, in particular) are ambitious - as is the consensus, given less buoyant economic conditions, which in particular should weigh on the outlook for Personal Health, the broker reiterates its neutral rating on the stock, along with a target price of 33 euros, suggesting upside potential of around 2%.
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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.
5% - which exceeds expectations - Oddo BHF says that it is actually disappointed by this publication.
The analyst notes that most of this pleasant surprise comes from the "other" division, while the branch "Personal Health" division has published a "mixed" quarter, while CCHI disappoints. The analyst says that the “other” division has benefited from almost doubling its sales, with an adjusted EBITA of 57 million euros (against -7 million euros expected by the consensus and -24 million euros in Q4 2017), thanks to the payment of royalties from Signify. However, when adjusted for this item, EBITA would have been over 5% less than expected, Oddo BHF points out.
The broker believes that the group's targets for 2017-2020 (organic growth of 4%-6% p.a., 100 bp annual increase in its adjusted EBITA margin, in particular) are ambitious - as is the consensus, given less buoyant economic conditions, which in particular should weigh on the outlook for Personal Health, the broker reiterates its neutral rating on the stock, along with a target price of 33 euros, suggesting upside potential of around 2%.
Copyright (c) 2019 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.