- Philips (PHG, Financial) reports a slight increase in Q1 order intake despite challenges in China.
- Adjusted EBITA margin declines to 8.6%; free cash outflow affected by settlements.
- Analyst consensus indicates a potential upside of nearly 15% for PHG.
Philips (PHG) recently announced its first-quarter financial results, highlighting a 2% increase in comparable order intake. This rise came despite a slowdown in China, showcasing the company's resilience in the face of regional market fluctuations. Revenue held steady at EUR 4.1 billion, which is a testament to Philips' ability to maintain its sales momentum. However, the adjusted EBITA margin saw a dip, falling to 8.6%. A notable point of concern was the free cash outflow, which reached EUR 1,091 million, primarily due to settlements related to Respironics. Nonetheless, the company remains optimistic about achieving steady sales growth by 2025.
Wall Street Analysts Forecast
Turning our attention to Wall Street analysts, the outlook for Koninklijke Philips NV (PHG, Financial) appears promising. Analysts have set an average one-year price target of $29.48, with projections ranging between a high of $32.97 and a low of $25.98. This suggests an upside potential of 14.96% from the current trading price of $25.64. For a more comprehensive analysis of these estimates, visit the Koninklijke Philips NV (PHG) Forecast page.
Based on the consensus from two brokerage firms, Philips currently holds an average brokerage recommendation of 2.0, signifying an "Outperform" status. This rating, which is on a scale from 1 to 5, indicates a bullish sentiment, where 1 represents a Strong Buy and 5 represents a Sell.
From GuruFocus' perspective, the estimated GF Value for Koninklijke Philips NV (PHG, Financial) in the coming year is predicted to be $20.88. This implies a potential downside of 18.56% from its current price of $25.64. The GF Value is calculated based on historical trading multiples, as well as past and anticipated business performance. Investors can explore more detailed insights on the Koninklijke Philips NV (PHG) Summary page.
