ABB (Hold, TP: SEK660.00) - Solid end of the year
The Q4 results were solid, as organic orders grew 7% YOY, with Electrification up 16% organically YOY on strong demand from data centres. The 2025 guidance is a book-to-bill of >1x, mid-single-digit organic sales growth and the operating EBITA margin to improve YOY. Electrification’s margin was on the softer side (130bp below our forecast), but in our view largely due to temporary mix effects. We have roughly maintained our 2025–2026e sales and operating EBIT, and reiterate our HOLD and target price of SEK660.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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