The German financial institution upgraded the health technology group's stock to Buy (from Hold), while raising its target price to €33 (from €25).

Analysts believe that the company has completed a major restructuring of its operations. After a period of pressure on earnings, improved cost control and greater efficiency mean that the group can now look to a more profitable future, DZ Bank says.

Yesterday, AlphaValue also upgraded Philips to Buy (from Accumulate), with a target price of €36.80. Analysts justified the upgrade by higher earnings estimates. However, against this, they also believe that the company is well positioned to counter potential profitability challenges relating to tariffs and unfavorable currency effects.

AlphaValue notes that despite initially high forecasts, they have been raised further. The improvement is driven by healthy revenue growth, productivity measures, innovations and a favorable product mix. In addition, Philips benefits from an increase in its order intake, reflecting rising demand for its products.