HSBC upgraded Philips to Hold from Reduce with a price target of EUR 19, up from EUR 18. The company’s consent decree signed with the Food and Drug Administrating reveals no new surprises, but points to a lengthy and complex remediation process, the analyst tells investors in a research note. The firm says ultimate personal injury liability, with no provisions set so far, remains the main question mark for the investment theme. HSBC upgraded Philips after reducing the company’s additional risk premium tied to uncertainty. It no longer penalizes Philips with an additional risk premium compared to peers based on uncertainty related to the recall and pending consent decree.
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