Zacks Investment Research Upgrades ABB (ABB) to Buy
ABB (NYSE:ABB) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday. The brokerage presently has a $29.00 price objective on the industrial products company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 11.11% from the company’s current price.
According to Zacks, “ABB’s shares have outperformed the industry’s average return over the past year, and the company also boasts an excellent earnings surprise history over the trailing four quarters. ABB’s operations continue to benefit from power infrastructure investments and strategic restructuring plans. Strong order growth, particularly in Robotics and Motion segment, bode well for the coming quarters. The third stage of ABB’s revamped “Next Level Strategy” will help unlock ABB’s full digital potential, increasing momentum in operational excellence and boosting the company’s brand. We are highly optimistic about ABB’s recent acquisition of GE Industrial Solutions, which will fortify its global foothold in electrification, and expand its access to the North American market. However, volatility in oil & gas markets and uncertainty in the process industries remain major headwinds for the company. “
Several other research firms also recently weighed in on ABB. Goldman Sachs Group reissued a “buy” rating on shares of ABB in a research note on Monday, November 6th. Jefferies Group set a $20.00 price target on shares of ABB and gave the stock a “sell” rating in a research note on Tuesday, November 28th. Deutsche Bank raised shares of ABB from a “hold” rating to a “buy” rating in a research note on Monday, December 4th. J P Morgan Chase & Co reissued a “neutral” rating on shares of ABB in a research note on Friday, November 24th. Finally, Robert W. Baird reissued a “buy” rating and issued a $29.00 price target on shares of ABB in a research note on Wednesday, October 4th. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and eight have issued a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus target price of $26.00.
ABB (NYSE:ABB) last posted its quarterly earnings results on Thursday, October 26th. The industrial products company reported $0.34 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.30 by $0.04. The firm had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.55 billion. ABB had a net margin of 6.79% and a return on equity of 18.65%. The company’s revenue for the quarter was up 5.7% on a year-over-year basis. During the same period last year, the firm posted $0.32 earnings per share. sell-side analysts expect that ABB will post 1.24 earnings per share for the current fiscal year.
Hedge funds have recently modified their holdings of the business. Bank of Nova Scotia Trust Co. purchased a new position in ABB during the third quarter worth about $113,000. Cubist Systematic Strategies LLC raised its stake in ABB by 296.7% during the second quarter. Cubist Systematic Strategies LLC now owns 4,800 shares of the industrial products company’s stock worth $120,000 after purchasing an additional 3,590 shares during the period. Mountain Capital Investment Advisors Inc purchased a new position in ABB during the second quarter worth about $120,000. IFP Advisors Inc raised its stake in ABB by 71.0% during the second quarter. IFP Advisors Inc now owns 6,552 shares of the industrial products company’s stock worth $163,000 after purchasing an additional 2,721 shares during the period. Finally, Quantbot Technologies LP purchased a new position in ABB during the third quarter worth about $184,000. 4.76% of the stock is currently owned by institutional investors.
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ABB Ltd (ABB) is a holding company. The Company’s segments include Electrification Products, Robotics and Motion, Industrial Automation, Power Grids, and Corporate and Other. It operates through four divisions: Electrification Products, Robotics and Motion, Industrial Automation and Power Grids. It is engaged in serving customers in utilities, industry and transport and infrastructure.
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