We are re-initiating coverage on Royal Philips (market cap. of €26bn and a float of c.98%) with an ‘Add’ recommendation and a target price of €32.0 (c.15% upside). Our upside is driven by the transformation of Philips into a pure play HealthTech player (we estimate deconsolidation of Philips Lighting with ownership stake falling below 50% in H2 FY17), margin upgrade potential (primarily in the Diagnostics & Treatment segment) and focused cost optimisation initiatives
20 Feb 2017
Re-initiating coverage
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Re-initiating coverage
Koninklijke Philips N.V. (PHIA:WBO) | 0 0 1.5% | Mkt Cap: 29,653m
- Published:
20 Feb 2017 -
Author:
Nishant Choudhary -
Pages:
3
We are re-initiating coverage on Royal Philips (market cap. of €26bn and a float of c.98%) with an ‘Add’ recommendation and a target price of €32.0 (c.15% upside). Our upside is driven by the transformation of Philips into a pure play HealthTech player (we estimate deconsolidation of Philips Lighting with ownership stake falling below 50% in H2 FY17), margin upgrade potential (primarily in the Diagnostics & Treatment segment) and focused cost optimisation initiatives