Koninklijke Philips N.V. (PHG): A Bull Case Theory

We came across a bullish thesis on Koninklijke Philips N.V. on Pillars And Profits’s Substack by Soren Peterson. In this article, we will summarize the bulls’ thesis on PHG. Koninklijke Philips N.V.'s share was trading at $28.32 as of December 1st. PHG’s trailing and forward P/E were 151.71 and 14.90 respectively according to Yahoo Finance.

Philips (NYSE: PHG, Mkt Cap $26.53bn) is a leading health technology company focused on streamlining operations and improving profitability. In 2024, the company delivered a 19% total shareholder return as it advanced initiatives to enhance efficiency and simplify its structure. Despite this progress, Philips faces challenges stemming from uncertainties in the Chinese market and ongoing U.S. litigation linked to its Respironics products.

These issues have weighed on investor sentiment but remain manageable relative to the company’s long-term fundamentals. As of year-end 2024, Exor’s net asset value in Philips stood at $4.63bn, reflecting its significant exposure to the company’s transformation story. Exor has made three separate investments in Philips, with the most recent in 2025, bringing its total ownership to 18.4% of shares (18.7% voting rights).

This sustained commitment underscores Exor’s confidence in Philips’ strategy to drive growth while simplifying its operations to unlock margin expansion. The company’s focus on innovation, digital integration, and operational discipline positions it to strengthen its market standing in global health technology. While near-term risks persist, Philips’ improving profitability trajectory, supported by Exor’s long-term backing, presents a potential rerating opportunity as the business stabilizes and growth initiatives take hold.

Previously we covered a bullish thesis on Medtronic plc (MDT) by Investing Intel in May 2025, which highlighted the company’s strong execution, portfolio momentum, and planned spin-off of its diabetes unit to unlock value. The company’s stock has appreciated by 28.08% since our previous coverage, as the transformation continues. The thesis still stands as MDT remains a defensive value play undergoing strategic realignment. Soren Peterson shares a similar but emphasizes on Philips’ operational simplification and margin recovery within the same medtech landscape.

Koninklijke Philips N.V. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held PHG at the end of the second quarter which was 12 in the previous quarter. While we acknowledge the potential of PHG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.