Philips Has A Big Opportunity To Show Its Ability To Execute

Diversified healthcare companies don’t really provide many clean reads on the COVID-19 crisis. Philips (PHG) is a good case in point, as the company’s Image-Guided Therapy business is likely to see weak procedure counts until at least the second half of the year, and the COVID-19 crisis could drive lower capital equipment spending in Imaging. On the other hand, Philips is going to see significant revenue growth in its Monitoring and Ventilator businesses, and if management can execute on this opportunity (in terms of margin leverage), the upside is meaningful.

I don’t really like “Big Iron” in healthcare (a colloquialism covering large-scale capital equipment), and that is more than one-third of Philips’ business. On the other hand, expectations are not demanding, and Philips could still have some upside if it can execute well on its order book.

Click here:
Philips Has A Big Opportunity To Show Its Ability To Execute