Signify: Still no inflection in sight, cut PT to €17

Research evidence excerpt

Signify: Still no inflection in sight, cut PT to €17

Global Research

24 July 2026ab

Signify Equities

NetherlandsStill no inflection in sight, cut PT to €17

Industrial, Diversified

12-month rating Neutral *

We think that disappointing Q2 results were not a major surprise following the

back-end loaded CMD targets. We have cut our adj. EBITA estimates by 4-5%

12m price target €17.00

and updated our valuation, leading to a new price target of €17 versus €20

Prior : €20.00

previously. The Q2 results revealed that there seem to be too many moving

parts in the divisions that make it hard to predict earnings. We can also imagine Price (24 Jul 2026) €14.79

it makes it more difficult to run the company, which is why the envisaged RIC: LIGHT.AS BBG: LIGHT NA

company streamlining seems like the right thing to do. However, is unlikely to

result in any quick fixes, which is why combined with the muted end market Trading data and key metrics

outlook we keep our Neutral rating. 52-wk range €23.66-14.79

Market cap. €1.81b/US$2.06b

Conference call and the hydra of having too many moving parts: we think it was Shares o/s 123m (ORD)

striking during the conference call how management went through the many moving Free float 100%

parts explaining the different performance layers in the Consumer business alone. So we Avg. daily volume ('000) 669

would not be surprised if the market concludes that if there was one area improving Avg. daily value (m) €12.6

again going forward that another might deteriorate. It seems also clear that additional Common s/h equity (12/26E) €2.67b

pricing action will have to be taken and that the achievement of the FY guidance will be P/BV (12/26E) 0.7x

quite backend-loaded. Net debt to EBITDA (12/26E) 1.5x

EPS (UBS, diluted) (EUR)

We have cut our adj.