Jefferies notes that the FDA has sent a warning letter to Philips about its CT systems made in its Chinese plant and says that “even if the issues raised seem manageable, this is putting the company again under the spotlight for quality/safety issues.” The firm, which thinks this news may cause a pullback in the shares, maintains an Underperform rating given potential risks that include share loss in Imaging, personal injury litigation and a delayed recovery of earnings.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PHG:
- HSBC upgrades Philips to Hold on reduced uncertainty
- Philips upgraded to Hold from Reduce at HSBC
- Philips Respironics reaches agreement with U.S. government on consent decree
- Philips Respironics reaches agreement with US government on a consent decree creating a clear path forward
- Philips Foundation and March of Dimes partner to improve prenatal care access in underserved communities, helping address US maternal and infant health challenges
