Philips
Oct 29, 2024
Philips shares dropped 17% yesterday following third-quarter results that fell short of expectations, prompting the company to lower its full-year comparable sales forecast. Management cited weakness in the crucial Chinese market, which accounts for 7.7% of 2023 sales, due to low consumer confidence and an ongoing anti-corruption campaign affecting the healthcare sector. We see the €4 billion market cap decline as a buying opportunity, as Philips’ transformation into a high-growth, high-margin healthcare company remains on course. The stock currently trades at 16.6 times next year’s earnings and 8.9 times EV/EBITDA. Accordingly, we are increasing our position.