ABB (NYSE:ABB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “ABB’s shares have outperformed the industry’s average return over the past year. 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. However, volatility in oil & gas markets, tough macroeconomic and geopolitical conditions and uncertainty in the process industries remain major headwinds. Also, a stringent competitive environment, volatility in raw material prices and dwindling customer expenditure add to the woes. This apart, lower capital spending in the company’s key upstream energy end-markets will hurt its prospects.”
Several other research analysts also recently commented on the stock. Deutsche Bank raised shares of ABB from a “hold” rating to a “buy” rating in a report on Monday, December 4th. Goldman Sachs Group reissued a “buy” rating on shares of ABB in a report on Monday, November 6th. JPMorgan Chase & Co. reissued a “neutral” rating on shares of ABB in a report on Friday, November 24th. Jefferies Group set a $20.00 price target on shares of ABB and gave the company a “sell” rating in a report on Tuesday, November 28th. Finally, Robert W. Baird reaffirmed a “buy” rating and set a $29.00 price objective on shares of ABB in a report on Wednesday, October 4th. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and seven have given a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $26.00.
ABB (NYSE:ABB) last announced its quarterly earnings results on Thursday, October 26th. The industrial products company reported $0.34 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.30 by $0.04. ABB had a net margin of 6.79% and a return on equity of 18.65%. The firm had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.55 billion. During the same period last year, the firm earned $0.32 EPS. The business’s quarterly revenue was up 5.7% compared to the same quarter last year. sell-side analysts forecast that ABB will post 1.24 earnings per share for the current fiscal year.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Scotia Capital Inc. raised its position in ABB by 2.2% in the 2nd quarter. Scotia Capital Inc. now owns 14,850 shares of the industrial products company’s stock worth $370,000 after purchasing an additional 314 shares during the period. Dorsey & Whitney Trust CO LLC raised its position in ABB by 2.9% in the 2nd quarter. Dorsey & Whitney Trust CO LLC now owns 13,917 shares of the industrial products company’s stock worth $347,000 after purchasing an additional 392 shares during the period. Oppenheimer & Co. Inc. raised its position in ABB by 0.7% in the 2nd quarter. Oppenheimer & Co. Inc. now owns 61,090 shares of the industrial products company’s stock worth $1,521,000 after purchasing an additional 441 shares during the period. Sandhill Capital Partners LLC raised its position in ABB by 3.4% in the 2nd quarter. Sandhill Capital Partners LLC now owns 21,778 shares of the industrial products company’s stock worth $542,000 after purchasing an additional 721 shares during the period. Finally, Logan Capital Management Inc. raised its position in ABB by 1.9% in the 2nd quarter. Logan Capital Management Inc. now owns 40,233 shares of the industrial products company’s stock worth $1,002,000 after purchasing an additional 760 shares during the period. 4.74% of the stock is owned by institutional investors.
ABB Company Profile
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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