Skip to content

AI sets Philips’ stock price for next 12 months

AI sets Philips' stock price for next 12 months

The stock price of medical equipment maker Philips (NYSE: PHG) is experiencing bullish sentiments as the company strives to overcome regulatory concerns that have plagued it. 

Notably, the company has reached a $1.1 billion settlement with United States regulators over a dispute about a recall of sleep apnea medical devices.

This settlement amount is much lower than analysts had projected, considering the severity of the issue. The funds will cover the expected expenses for a medical monitoring class-action lawsuit and individual personal injury claims in the US.

Following the regulatory boost, PHG stock surged by 34.50% in the premarket, representing a share price of $28.34.

Philips stock premarket price. Source: Nasdaq

Overall, the stock has had a challenging 2024, with the equity plunging by almost 10% year-to-date. However, PHG has shown signs of stabilization, gaining over 6% in the past month.

Philips three-months stock chart. Source: Chartmill

AI predicts PHG stock 

To gain insights into how PHG stock will trade in the coming months, Finbold consulted OpenAI’s ChatGPT artificial intelligence (AI) tool. According to the tool, the stock will likely benefit from positive news about the settlement.

Positive developments, such as strong financial performance, successful execution of strategic plans, and favorable market conditions, could lead to further appreciation. In this scenario, the AI tool foresees Philips trading between $30 and $40 in the next 12 months.

Philips stock AI prediction. Source: ChatGPT

Additionally, Google’s Gemini AI tool projected bullish momentum for the stock in the coming months. The tool predicts that PHG will likely trade at $30 in the next 12 months, noting that regulatory clarity removes an overhang over the stock.

Philips stock AI prediction. Source: Gemini

Philips stock lifeline

In the meantime, Philips’ stock has experienced a significant decline since the company initiated actions to address faulty sleep therapy devices. 

The decline began following the firm’s recall in June 2021, prompted by health concerns about deteriorating noise-dampening foam within machines designed to treat sleep apnea. The US Food and Drug Administration classified the issue as Class 1, indicating its severity.

Philips stock price since sleep device concerns. Source: Bloomberg

Indeed, Philips has been actively enhancing patient safety protocols across its product lines. Therefore, the regulatory settlement potentially provides a lifeline expected to bolster investor confidence.

This comes as Philips reported its results for the first quarter. The firm recorded a loss of $1.07 billion, while adjusted earnings surpassed consensus analyst expectations, reaching $415 million for the quarter.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.