Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Tuesday, BNP Paribas (OTC:BNPQY) Exane upgraded Koninklijke Philips NV (ETR:PHI1) (PHIA:NA) (NYSE: PHG) stock from Neutral to Outperform, while also increasing the price target to EUR29.00, up from the previous target of EUR23.00. The upgrade reflects a positive outlook on the company’s potential for a rebound, as the shares are currently trading at a significant discount of more than 20% compared to its peers. According to InvestingPro data, the stock is currently trading at $25.98, with analysts setting targets ranging from $27 to $39, suggesting potential upside. The company’s Fair Value analysis indicates it may be slightly undervalued at current levels.
The analyst from BNP Paribas Exane, Hugo Solvet, provided insights into the factors contributing to the upgraded outlook. Solvet noted the rebased expectations and a cautious fiscal year 2025 guide as key elements that could lead to a recovery in Philips’ share price. InvestingPro analysis shows promising signs, with net income expected to grow this year and EPS forecasts for 2025 at $1.70. Additionally, the anticipation of a Capital Markets Day (CMD) planned for late 2025 is expected to further influence the stock’s performance.
Despite the revised fiscal year 2025 guidance necessitating limited reductions in forecasts, these are partially mitigated by a stronger foreign exchange tailwind. The analyst has adjusted long-term assumptions to align with the lower end of the company’s guidance for the year 2025 and beyond.
The new price target of EUR29.00 is derived from a combination of discounted cash flow (DCF) and sum-of-the-parts (SOTP) valuation methods, with a reduction in the discount applied in the valuation. This adjustment suggests increased confidence in Philips’ financial outlook and the potential for share price appreciation.
Investors and market watchers will likely keep an eye on Philips’ progress towards its long-term goals and the impact of its strategic initiatives on the company’s financial performance as outlined in the upcoming Capital Markets Day.
In other recent news, Koninklijke Philips NV has seen a series of updates that may interest investors. UBS analyst Graham Doyle upgraded Philips’ stock rating from Neutral to Buy, raising the price target to EUR29.00. This decision follows Philips’ progress in resolving past issues, such as completing a product recall and settling major litigation. Doyle notes Philips’ potential for a 5% compound annual growth rate in revenue and a 10% growth in earnings per share from 2025 to 2029. Meanwhile, Bernstein SocGen Group maintained a Market Perform rating for Philips, keeping the price target at EUR32.00. The firm cited a drop in Personal Health sales in China as a concern but expects mid to high single-digit growth in other divisions. Analyst Lisa Bedell Clive from Bernstein also adjusted Philips’ price target to $33.00, maintaining an Outperform rating, acknowledging the challenges in China’s market. Despite these hurdles, Clive highlights Philips’ strong market positions and its alignment with healthcare industry trends.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.