Philips ended 2021 on a soft note, with Q4 sales c.5% behind our expectations. Although full-year margin erosion was less severe than expected, management’s acknowledgement of supply challenges and installation delays has spooked the markets. Moreover, the scope of device recall was widened, also resulting in higher provisions. Flagged challenges should result in our target price being trimmed further. While the recommendation should remain unchanged on the back of sacrosanct potential of under ....
12 Jan 2022
2022 is starting on a worrisome note; patience warranted
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2022 is starting on a worrisome note; patience warranted
Philips ended 2021 on a soft note, with Q4 sales c.5% behind our expectations. Although full-year margin erosion was less severe than expected, management’s acknowledgement of supply challenges and installation delays has spooked the markets. Moreover, the scope of device recall was widened, also resulting in higher provisions. Flagged challenges should result in our target price being trimmed further. While the recommendation should remain unchanged on the back of sacrosanct potential of under ....