Philips: Clear goals by 2025

At a capital market day, Philips confirmed the medium-term goals up to 2025. The sales of the Dutch are expected to increase organically by an average of 5 percent to 6 percent annually. This means that sales in 2025 should be between EUR 22 billion and EUR 23 billion. The adjusted EBITA margin is expected to increase by 60 to 80 basis points annually. In 2025 it should be in the high tens, in 2019 it was 13.2 percent. Adjusted earnings per share are expected to increase by 10 percent annually from 2022. There should also be savings of 2.0 billion euros in the coming years. With these goals, Philips is creating more visibility.

The analysts at Independent Research have reduced their earnings estimate per share for 2020 from EUR 1.40 to EUR 1.37. The forecast for 2021 drops from 1.85 euros to 1.73 euros.

The analysts give unchanged a hold recommendation for the shares of Philips. The price target increases from EUR 45.00 to EUR 46.00.

The dividend yield is around 2 percent.

The papers of Philips lose 0.2 percent in the morning to 43.45 euros.


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