Philips: J.P. Morgan downgrades stock
(CercleFinance.com) - On Wednesday J.
P. Morgan downgraded Philips shares from "neutral" to "underweight", while reducing its corresponding target price from 26.5 euros to 21.3 euros (current price: 23 euros, -1.2%).
In a report, the broker argues that the stockmarket performance of the healthcare equipment specialist has been lacklustre, but that it has actually only followed that of the market.
The analyst points out that the stock is currently trading at a P/E of 15.3x, compared with 13.2x for the market as a whole.
For J.P. Morgan, the stock's risk/reward profile remains unattractive given the Dutch group's weak growth in Q1, the apparent deterioration of its ventilation equipment business and the state of demand in China.
Analysts therefore believe that the share's current valuation is unjustified given the risk surrounding reductions in the group's earnings outlook.
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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.
P. Morgan downgraded Philips shares from "neutral" to "underweight", while reducing its corresponding target price from 26.5 euros to 21.3 euros (current price: 23 euros, -1.2%).
In a report, the broker argues that the stockmarket performance of the healthcare equipment specialist has been lacklustre, but that it has actually only followed that of the market.
The analyst points out that the stock is currently trading at a P/E of 15.3x, compared with 13.2x for the market as a whole.
For J.P. Morgan, the stock's risk/reward profile remains unattractive given the Dutch group's weak growth in Q1, the apparent deterioration of its ventilation equipment business and the state of demand in China.
Analysts therefore believe that the share's current valuation is unjustified given the risk surrounding reductions in the group's earnings outlook.
Copyright (c) 2022 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.