into healthcare, comes as the Dutch group is facing lawsuits and probes by the U.S. Department of Justice relating to faulty breathing devices.
A crisis can also be an opportunity. Philips’ shares are down some 62% since the peak in April 2021, and it now looks much cheaper than the sum of its parts. Based on peer multiples, its diagnostics business could be worth 14 times 2024 EBITDA, while its connected care unit, which helps hospitals manage patient data, might be valued at 18.5 times EBITDA. Lastly, throw in the consumer division, which makes toasters and TVs, and could fetch 12 times EBITDA.
To realise that value, Exor will need new CEO Roy Jakobs to complete his turnaround. Analysts are optimistic he can: they now expect Philips' EBITDA to hit 3.4 billion euros in 2025, close to the 3.6 billion euros the company generated in 2020 before the recall of millions of breathing machines in 2021, according to Refinitiv data. Exor’s show of faith may help convince other investors that Jakobs is on the right track.
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Source: Reuters - 🏆 2. / 97 Read more »