The EUR 20.8 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

From a fundamental viewpoint, Philips seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, represents 0.93 times its revenues.
Furthermore, EPS estimates have been revised upward in the last few months by analysts. This positive fact opens the way for a better evaluation of the security by investors.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction should stop this trend and allow a technical rebound towards EUR 23.3. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario. The breakout of the 20-day moving average and the EUR 21.94 resistance offers a buy signal.

Main goal will be the EUR 23.3 with a stop-loss below the 20-day moving average at EUR 21.6.