ABB (Hold, TP: SEK640.00) - Fair value territory
We have downgraded ABB to HOLD (BUY) as the risk/reward and valuation look fairer, in our view, at a 2025e EV/EBIT of 17.3x. We view Q3 as neutral overall, but have lowered our 2024–2026e operating EBITA by c5% on average, and reiterate our SEK640 target price. The new CEO emphasised a focus on decentralisation and profitable growth, rather than large structural changes.ABB specializes in power and automation technologies. Co. provides a broad range of products, systems, solutions and services that are designed to boost industrial productivity, increase power grid reliability, and enhance energy efficiency. Co.'s automation businesses serve a full range of industries with process optimization, control, measurement and protection applications. Co.'s power businesses focus on power transmission, distribution and power-plant automation, and support electric, gas and water utilities, as well as industrial and commercial customers.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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