Zacks Investment Research upgraded shares of Koninklijke Philips Electronics N.V. (PHG) from UNDERPERFORM to NEUTRAL on July 27, 2012, with a target price of $23.00.
We are upgrading our Underperform recommendation on Philips to Neutral with a $23 target price. The company has returned to profitability in the second quarter 2012 against a loss in the year-ago quarter, sending earnings estimates higher over the past 30 days. Cost reduction plans and innovative product launches should add to the company's growth strategy and work in its favor. Further, sales increased 5% on a comparable basis with all sectors performing well. The only exception was the Innovation, Group & Services sector, which registered a 13% decline in sales. Though the stock is yet to reach pre-recession price levels, it did well in 2010 and plummeted again in 2011. Now, the stock is again back on the recovery path and its growth prospects appear bright with the rising Zacks Consensus Estimate.
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