Signify : +3%, Barclays sees 'light at the end of the tunnel
March 18, 2024 at 07:27 am EDT
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Signify shares rose on Monday following a double recommendation upgrade by Barclays, which says it sees "light at the end of the tunnel".
At around 12.10 pm, shares in the Dutch lighting specialist were up 3.2%, making it one of the strongest performers on the pan-European STOXX 600 index.
According to Barclays, which upgraded its rating from 'underweight' to 'overweight' and raised its target price from 29 to 32 euros, the process of downward revision of consensus earnings forecasts is now over, after two years of estimates lowered by the market.
The British bank also points to a risk/return profile that has become attractive again, with a floor valuation characterized by a P/E of less than 9x, as well as potential upside due to the upturn in PMI activity indices.
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Signify N.V. is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Its Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. Signify N.V. has 31,920 employees and operates in 74 countries. The company unlocks the extraordinary potential of light for brighter lives and a better world. Net sales break down by family of products as follows:
- luminaires and lighting systems for professionals (58.7%): to Public, Office & Industry and Retail & Hospitality;
- LED lamps, functional domestic luminaires and connected home lighting (31.6%);
- conventional lamps and professional electronics (9.4%);
- other (0.3%).
Net sales are distributed geographically as follows: the Netherlands (7.8%), the United States (33%), China (6.7%), Germany (5.8%) and other (46.7%).