Philips shares hit their highest level in 150 sessions and climb 6.5%

Third-quarter results support a stock approaching its resistance level

Philips gains 6.53% to €26.12, after publishing this morning its third-quarter results. Comparable order intake rises 8%, driven by the Diagnosis & Treatment segment, and revenue reaches €4.4 billion, up 3% on a comparable basis.

The adjusted EBITA margin gains 70 basis points, to 13.0%, with improvement in each of the three segments.

The quarter also includes a €288 million provision linked to the agreement in principle reached by its subsidiary Respironics with the US Department of Justice, and the group confirms its annual targets.

The stock has gained 9.11% over one week and has broken two thresholds successively to the upside: the highest of the last 30 sessions at €24.52, then the highest of the last 150 sessions at €25.35, both of which have now turned into support. The next resistance lies at €27.57.

A price well above its moving averages, with an RSI at 83

The price is 12.10% above its 20-day moving average (€23.30) and 16.04% above its 50-day moving average (€22.51). This gap, combined with an RSI of 83, places the stock in a marked overbought configuration, which signals a rapid movement rather than an established trend.

Today's rise also brings the three-month performance to 14.86%, while the CAC 40 slips slightly by 0.06% at the same time.

Philips also has an analyst consensus available to help position the stock. The company announced on 12 May a €500 million share buyback programme, a contextual element that adds to its confirmed targets for the year. The €25.35 level, a former resistance now below the price, constitutes the threshold to watch.