Zacks Investment Research Downgrades Koninklijke Philips (PHG) to Sell

Koninklijke Philips (NYSE:PHG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Thursday.

According to Zacks, “Philips is gradually evolving as a healthcare company, having augmented its presence in the domain, primarily driven by an expanding portfolio. However, the company is under scrutiny from the FDA concerning a defibrillators dispute, which is expected to hurt profitability. Moreover, although management remains optimistic about growth prospects across sleep & respiratory care, health & wellness and personal care, top-line growth in Personal Health business is expected to decline due to deep discounting by competitors. Additionally, trade related tariffs are expected to have a negative net impact of €60 million in 2019. Moreover, sluggish United Kingdom market is a concern. Currency fluctuation in emerging markets is also a concern. Meanwhile, estimates have been going down ahead of the company’s Q4 earnings release.”

Other research analysts have also recently issued reports about the company. BNP Paribas raised Koninklijke Philips from a “hold” rating to a “buy” rating in a research report on Monday, September 17th. Sanford C. Bernstein assumed coverage on Koninklijke Philips in a research report on Thursday, September 13th. They issued an “outperform” rating for the company. ValuEngine cut Koninklijke Philips from a “buy” rating to a “hold” rating in a research report on Monday, October 22nd. Credit Suisse Group cut Koninklijke Philips from an “outperform” rating to a “neutral” rating in a research report on Tuesday, October 2nd. Finally, Exane BNP Paribas raised Koninklijke Philips from a “neutral” rating to an “outperform” rating in a research report on Tuesday, September 18th. One analyst has rated the stock with a sell rating, two have issued a hold rating and five have assigned a buy rating to the company. Koninklijke Philips currently has an average rating of “Buy” and a consensus price target of $46.00.

Shares of NYSE PHG opened at $34.97 on Thursday. Koninklijke Philips has a 52 week low of $32.98 and a 52 week high of $46.67. The company has a quick ratio of 0.89, a current ratio of 1.27 and a debt-to-equity ratio of 0.32. The company has a market cap of $32.85 billion, a P/E ratio of 28.20, a P/E/G ratio of 4.26 and a beta of 1.19.

Koninklijke Philips (NYSE:PHG) last issued its quarterly earnings results on Monday, October 22nd. The technology company reported $0.38 EPS for the quarter. Koninklijke Philips had a return on equity of 9.35% and a net margin of 7.10%. The firm had revenue of $5.01 billion during the quarter. As a group, equities research analysts anticipate that Koninklijke Philips will post 1.5 EPS for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Strategic Wealth Partners Ltd. acquired a new stake in shares of Koninklijke Philips in the third quarter valued at approximately $449,000. Greenwood Gearhart Inc. increased its stake in shares of Koninklijke Philips by 1.4% during the third quarter. Greenwood Gearhart Inc. now owns 116,940 shares of the technology company’s stock worth $5,322,000 after purchasing an additional 1,567 shares during the period. Steadfast Capital Management LP increased its stake in shares of Koninklijke Philips by 0.5% during the third quarter. Steadfast Capital Management LP now owns 1,067,116 shares of the technology company’s stock worth $48,564,000 after purchasing an additional 5,605 shares during the period. Tekla Capital Management LLC bought a new position in shares of Koninklijke Philips during the third quarter worth approximately $1,506,000. Finally, AMP Capital Investors Ltd increased its stake in shares of Koninklijke Philips by 58.4% during the third quarter. AMP Capital Investors Ltd now owns 105,783 shares of the technology company’s stock worth $4,878,000 after purchasing an additional 38,983 shares during the period. 4.64% of the stock is owned by institutional investors.

Koninklijke Philips Company Profile

Koninklijke Philips N.V. operates as a health technology company worldwide. The company offers mother and child care, and oral healthcare products; male grooming and beauty products; kitchen appliance, coffee, air, garment care, and floor care products; and sleep, respiratory care, and respiratory drug delivery products.

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