Opinions Lorne Steinberg
Koninklijke Philips ElectronicsPHGTOP PICKAug 08, 2016
Lorne SteinbergOwned
$26.85
Stock price when the opinion was issued
$26.11
As of Jun 05, 2026. Market Open.
misc consumer products
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BUY
Hospital equipment supplier.
Recall on certain products has caused lawsuits.
Sees value with recent selloff of shares.
Good time to buy shares.
Lorne SteinbergOwned
misc consumer products
HOLD
No, it's not a European version of GE. Rather, PHG has done well, but their sleep apnea machine has gone into recall and attracted lawsuits. This is weighing on the stock, though long-term this is a good investment. Still happy to own it. But who knows how this or any lawsuit will end, and the overhang will continue over this stock.
Lorne SteinbergOwned
misc consumer products
BUY
Medical technology. Fantastic job repositioning away from consumer products. Likes the company. Under pressure due to CPAP recall. An opportunity.
Lorne SteinbergOwned
misc consumer products
COMMENT
Remember that the CAD is very strong, so European names may look down in your account because of the currency. Well run. If the turnaround is executed correctly, there could be significant upside from these levels. European stocks are trading down because of Ukraine. If you're underwater, you may just want to sell and move on.
misc consumer products
TOP PICK
They have grown into diagnostics equipment and connect care products. The stock is down due to a recall of their CPAP (sleep apnea) machines. He thinks this will create a good buying opportunity here that could double in the next 3-5 years. Yield 2.97% (Analysts’ price target is $55.13)
Lorne SteinbergOwned
misc consumer products
COMMENT
Finally spun off its lighting business into an IPO, called Philips Lighting. They own 75%, and got a great price for it. The lighting business accounts for about $3 per share of the value of the stock. They also got about $750 million from the IPO. They are now really a medical technology company, and are in some great niches that are growing. In fact, earnings growth for the next 3 years should be in a 10%-20% level, probably closer to 20%. Has not been well-managed in the past, but as a medical technology device business, they are incredibly well positioned. #1 globally in several of their areas. They will be cleaning up their balance sheet and probably making some more bolt-on acquisitions. Dividend yield of 3.36%.