Zacks Investment Research Lowers ABB Ltd. (ABB) to Hold
ABB Ltd. (NYSE:ABB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “ABB has a decent earnings history, with three beats and one miss in the four trailing quarters. ABB is one of the best managed industrial infrastructure, power and automation companies in the world that stands to benefit from investments made in the upgrade of power infrastructure. ABB’s proven “Next Level Strategy” and focused investments in three strategic areas are expected to propel growth. Going forward, the company’s operations in utilities, industry, and transport & infrastructure markets are anticipated to drive growth. However, on the flip side, volatility in the oil & gas industry and currency fluctuations are expected to pose as major headwinds, marring the company’s prospects. This apart, escalating geopolitical tension triggered by the Brexit referendum and weakness in key end markets are expected to play spoilsport. Also, poor sales and higher restructuring costs are adding to the problems.”
Other analysts have also issued reports about the company. HSBC lowered ABB from a “buy” rating to a “hold” rating in a report on Friday, August 19th. Deutsche Bank AG raised ABB from a “sell” rating to a “hold” rating in a research report on Friday, July 22nd. JPMorgan Chase & Co. reissued a “neutral” rating on shares of ABB in a research report on Monday, June 13th. Finally, BNP Paribas raised ABB from an “underperform” rating to an “outperform” rating in a research report on Thursday, September 1st. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have issued a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $23.30.
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ABB (NYSE:ABB) opened at 22.13 on Wednesday. The firm’s 50 day moving average price is $21.96 and its 200 day moving average price is $20.57. The firm has a market cap of $47.07 billion, a price-to-earnings ratio of 28.70 and a beta of 1.33. ABB has a 52-week low of $15.74 and a 52-week high of $22.78.
ABB (NYSE:ABB) last posted its earnings results on Thursday, July 21st. The company reported $0.35 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.26 by $0.09. ABB had a return on equity of 16.86% and a net margin of 4.91%. The company had revenue of $8.68 billion for the quarter, compared to analyst estimates of $8.83 billion. During the same quarter last year, the company earned $0.33 earnings per share. The company’s revenue for the quarter was down 5.3% on a year-over-year basis. Equities research analysts anticipate that ABB will post $1.08 EPS for the current fiscal year.
A number of large investors have recently bought and sold shares of the stock. Aperio Group LLC raised its stake in ABB by 31.1% in the first quarter. Aperio Group LLC now owns 746,514 shares of the company’s stock valued at $14,497,000 after buying an additional 177,291 shares in the last quarter. Tiemann Investment Advisors LLC purchased a new stake in shares of ABB during the first quarter valued at about $216,000. Ngam Advisors L.P. raised its stake in shares of ABB by 22.5% in the first quarter. Ngam Advisors L.P. now owns 633,129 shares of the company’s stock valued at $12,295,000 after buying an additional 116,351 shares during the period. Rehmann Capital Advisory Group purchased a new stake in shares of ABB during the first quarter valued at about $208,000. Finally, RMB Capital Management LLC raised its stake in shares of ABB by 17.2% in the first quarter. RMB Capital Management LLC now owns 147,212 shares of the company’s stock valued at $2,859,000 after buying an additional 21,596 shares during the period. 3.28% of the stock is owned by institutional investors.
ABB Ltd (ABB) is engaged in power and automation technologies. The Company manages its business based on five divisions: Discrete Automation and Motion, Low Voltage Products, Process Automation, Power Products and Power Systems. The Discrete Automation and Motion division provides low-voltage and medium-voltage drive products and systems for industrial, commercial and residential applications.
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