Bernstein Resumes Philips Coverage at Market Perform, Says FY26 Expectations 'Too High' Amid China, Tariff Risks

05:55 AM EST, 12/17/2025 (MT Newswires) -- Bernstein restarted its coverage of Philips (PHIA.AS) at Market Perform with a price target of 22.70 euros, adding that near-term expectations for the Dutch medical technology company are "too high" as pressures in full-year 2025 are expected to linger in the coming year. "While longer-term, Philips will continue with its transformation to progress towards mid-single digit growth and mid-to-high teens margins, expectations for what can be achieved in 2026 are too high given continued headwinds, including a weak China market and incremental tariffs. We forecast +3.7% organic growth and +30 [basis points] margin expansion vs. consensus at +4.5% and +50bps," according to a Tuesday note. For 2026, the research firm also flagged a potential doubling of net tariff impact as Philips exhausts its temporary mitigation measures as well as further risk from an ongoing US Department of Justice investigation related to the 2021 recall of its CPAP sleep machines.