Philips: Jefferies cuts to 'underperform'
(CercleFinance.com) - Jefferies on Tuesday downgraded its rating on Philips to "underperform" from "hold" while almost halving its price target to 11.
4 euros from 22 euros.
The firm's analysts said "uncertainty persists" following the Dutch healthcare conglomerate's profit warning last week.
Consumer cautiousness, as well as supply chain headwinds, are likely to continue next year, while sleep care sales are unlikely to recover, with Jefferies forecasting a 50% permanent share loss.
"We see the potential for further downgrades in 2023 and risks to mid-term guidance," the analysts added, also expecting higher financing costs to slow clients demand.
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