PHG Should I Buy
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Koninklijke Philips NV (PHG) is not an ideal buy at the moment for a beginner investor with a long-term strategy. Despite some positive financial recovery in Q4 2025, the stock faces significant headwinds, including hedge fund selling, mixed analyst ratings, and a lack of strong proprietary trading signals. The technical indicators suggest a neutral to slightly bullish trend, but the absence of strong catalysts and the company's ongoing regulatory and execution concerns make it a less compelling investment choice right now.
The technical indicators show a neutral to slightly bullish trend. The MACD histogram is positive at 0.244, indicating a bullish momentum, but it is contracting. The RSI at 61.903 is in the neutral zone, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support and resistance levels are Pivot: 30.657, R1: 32.546, S1: 28.769. However, the pre-market price is down 0.96%, indicating short-term weakness.
Philips reported a net income of EUR 397 million in Q4 2025, recovering from a net loss in the same period last year.
The company achieved a 7% increase in order intake and comparable sales growth, driven by strong contributions from Personal Health and Connected Care.
Gross margin improved by 15.34% YoY to 44.89%.
Hedge funds are heavily selling the stock, with a 30126.47% increase in selling over the last quarter.
Analysts have mixed ratings, with most maintaining Neutral or Equal Weight ratings and modest price target increases.
Regulatory and execution concerns persist, as highlighted by analysts.
Pre-market price is down 0.96%, reflecting short-term weakness.
In Q4 2025, Philips reported a revenue increase of 10.29% YoY to EUR 5.93 billion. However, net income dropped by -228.70% YoY to EUR 459.79 million, and EPS declined by -226.32% YoY to 0.48. Despite these declines, gross margin improved to 44.89%, up 15.34% YoY, indicating some operational efficiency improvements.
Analysts maintain a cautious stance on Philips. Morgan Stanley raised its price target to EUR 26 but kept an Equal Weight rating. JPMorgan increased its target to EUR 22.60 with a Neutral rating. RBC Capital initiated coverage with a Sector Perform rating, citing justified valuation due to lower sales growth potential and ongoing regulatory concerns. Overall, the sentiment is mixed, with no strong buy recommendations.
