Koninklijke Philips: AI Upside, And Margin Expansion Create An Attractive Entry Point

Productivity initiatives, cost discipline, and portfolio transformation continue to support earnings growth. Philips' extensive installed base and proprietary healthcare datasets position the company to capitalize on AI-enabled healthcare applications. Following a solid Q1 print-out, and combined with a potential recovery in EU MedTech sentiment, we believe this creates scope for both earnings growth and multiple expansion. We remain buyers.