Royal Philips NV, the Dutch maker of LED-lighting and electric toothbrushes, gained the most in almost eight months after Deutsche Bank raised the stock to buy, citing the possibility of higher mid-term targets.
Philips rose as much as 4.6 percent, the steepest intraday advance since Oct. 22. The shares traded 4.2 percent higher at 22.08 euros as of 1:20 p.m. in Amsterdam, valuing the company at about 22 billion euros ($29 billion). Deutsche Bank previously had a hold recommendation.
The company is moving “from fire-fighting to more consistent delivery” after it streamlined its portfolio, Martin Wilkie, a London-based analyst at Deutsche Bank, said in a note. Philips has a Sept. 17 meeting with investors scheduled in London, where the Dutch consumer appliance maker may unveil new targets as previous goals lapse, the analyst said.
Philips, which competes with Siemens AG and General Electric Co. in health-care equipment and lighting, has a target of increasing earnings before interest, taxes and amortization to 10 percent to 12 percent of sales by 2013. Philips may aim for a margin of 11 percent to 13 percent through 2016, Wilkie said.
“We see the next phase as being more about consistency,” the analyst said.