UBS downgrades Philips to 'neutral' as upside catalysts fade
BUZZ-UBS downgrades Philips to 'neutral' as upside catalysts fade ** UBS downgrades Dutch healthcare company Philips PHG.AS to "neutral" saying weaker end-market conditions are likely to delay a return to sustainable organic growth above 5%
** UBS notes upside "catalysts fade" as market conditions weaken with inflation expected "to offset almost all the benefit from productivity initiatives" in 2027
** Broker says pricing pressure in China's Health Systems market and broader inflationary headwinds are expected to constrain margin expansion
** Adds that the firm's Personal Health division faces significantly tougher comparable sales in 2026 and 2027, which pushes back timeline for return to sustainable mid-single-digit organic growth
** Lowers PT by 26% to 24 euros ($27.66), citing lower earnings forecasts and higher equity risk premium, while Philips' roughly 15% year-to-date outperformance has erased much of its valuation discount to peers
** Out of 23 analysts that cover Philips, 11 rate the stock "strong buy" or "buy," and 12 rate "hold" - LSEG data
($1 = 0.8678 euros)
(Reporting by Jerome Terroy)
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