- Koninklijke Philips (PHG +2.2%) was upgraded by ING Bank to Buy from Hold with a price target of EUR 45, down from EUR 50, noting that the shares have been "punished too much" by the DreamStation recall.
- In June, Philips announced the recall of millions of sleep apnea and ventilator machines over potential health risks. The product withdrawal was estimated to impact 3M to 4M devices, and more than half of them were in the U.S.
- The recall has benefitted rival ResMed (NYSE:RMD) whose prices of competing products have climbed and become scarce within just two months of Philips' recall.
- Image: Philips-ResMed Stock Comparison past three months
- ING analyst further noted that while the magnitude of litigation risk is uncertain, the pullback in the stock "provides sufficient margin for error.