Deutsche Bank Upgrades Philips Electronics (PHG) to Hold; 2012 Improvement Likely Backend Weighted

Deutsche Bank upgraded Philips Electronics (NYSE: PHG) from Buy to Hold, price target cut from EUR21 to EUR18.

Deutsche analyst says, "Our Buy thesis on Philips had been predicated on improved earnings into 2013 as the company lowers fixed costs, improves mix, and spurs growth. The stock still looks attractive on 2013 forecasts (6x EV/EBITA, 8.1x P/E) but far less so on 2012 (8.7x EV/EBITA, 11.9x P/E). Conviction on 2013 forecasts (and the company's own 2013 targets), however, is unlikely to improve until earnings momentum picks up, and with 2012 improvement now likely being H2 weighted, we think the stock is a market perform at best in H1’12."

For an analyst ratings summary and ratings history on Philips Electronics click here. For more ratings news on Philips Electronics click here.

Shares of Philips Electronics closed at $20.03 yesterday.

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