Helped in part by the company’s significant ventilator and monitoring assets, Philips (PHG) has performed better than many peers through the pandemic, as sales of those types of medical equipment have offset weaker “big iron” imaging system sales and lower procedure-driven revenue. Looking ahead, the eventual run-off of the pandemic will create tougher comps, but procedure and imaging sales should grow, and Philips is well-leveraged to long-term trends in telehealth.
Philips shares are up another 15% or so from the time of my last update, outperforming the broader med-tech space and peers like Medtronic (MDT), though Siemens Healthineers (OTCPK:SMMNY) has done even better over that short period of time. I still believe these shares offer worthwhile upside, with longer-term efforts to grow telehealth and boost operating margins offering some upside to growth rates.
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Philips Undervalued Ahead Of Normalizing Procedures And Telehealth Growth
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