(CercleFinance.com) – Societe Generale on Tuesday raised its recommendation on Philips stock from ‘hold’ to ‘buy’, mainly due to valuation issues.
‘At its current levels, we believe the stock is particularly undemandingly priced and priced in to all bad news, a view reflected in our model (which shows forecasts well below consensus) ‘, indicates the French bank.
SG points out that the concerns surrounding the recall of the Dutch group’s respiratory products should subside from the third quarter, which should allow the healthcare equipment manufacturer to relaunch its activity in this area.
The hexagonal establishment excludes, however, that the cost reduction program, which targets 500 million euros in annual savings, is sufficient to offset current inflationary pressures.
Due to the group’s slight decline in its ranking in terms of environmental, social and governance (ESG) factors, from first to second place, SocGen lowers its price target on the stock from 22.4 to 21 euros .
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