'Further proof required': RBC starts Philips at 'sector perform'

Koninklijke Philips

17/12/2025 06:54

** RBC initiates coverage on Philips PHG.AS at "sector perform", saying the healthcare technology company has to show further proof of execution despite a potential turnaround story beyond the 2022 recall of its sleep apnea devices

** It says Philips' valuation discount to peers is justified by a weaker growth outlook and margins, despite having recovered from 2022 lows

** "Ongoing regulatory and execution concerns also make us cautious," the broker says

** RBC sets a price target of 25 euros ($29.31), which is 10% higher than Tuesday's close of 22.5 euros

** Up to Tuesday's session, shares in Philips have dropped 7.6% this year

($1 = 0.8530 euros)

 (Reporting by Gianluca Lo Nostro)

 ((gianluca.lonostro@thomsonreuters.com;))