Published On: Wed, Sep 21st, 2016

Zacks Investment Research Downgrades 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 issued 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 research analysts have also recently issued reports about the company. HSBC cut ABB from a “buy” rating to a “hold” rating in a research 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 issued a hold rating and four have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $23.30.

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ABB (NYSE:ABB) opened at 22.13 on Wednesday. The stock 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 one year low of $15.74 and a one year high of $22.78. The stock’s 50 day moving average price is $21.96 and its 200 day moving average price is $20.57.
ABB (NYSE:ABB) last announced its earnings results on Thursday, July 21st. The company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.09. The business had revenue of $8.68 billion for the quarter, compared to analysts’ expectations of $8.83 billion. ABB had a return on equity of 16.86% and a net margin of 4.91%. The business’s revenue for the quarter was down 5.3% on a year-over-year basis. During the same period last year, the firm posted $0.33 earnings per share. Equities analysts predict that ABB will post $1.08 earnings per share for the current fiscal year.
Hedge funds have recently modified their holdings of the stock. First Interstate Bank increased its stake in shares of ABB by 40.1% in the second quarter. First Interstate Bank now owns 6,065 shares of the company’s stock valued at $120,000 after buying an additional 1,735 shares during the period. Sei Investments Co. boosted its position in ABB by 121.5% in the second quarter. Sei Investments Co. now owns 6,597 shares of the company’s stock valued at $131,000 after buying an additional 3,618 shares in the last quarter. BlackRock Institutional Trust Company N.A. purchased a new position in ABB during the first quarter valued at $150,000. Smith Asset Management Group LP purchased a new position in ABB during the second quarter valued at $186,000. Finally, Suntrust Banks Inc. boosted its position in ABB by 1.5% in the second quarter. Suntrust Banks Inc. now owns 10,342 shares of the company’s stock valued at $203,000 after buying an additional 157 shares in the last quarter. 3.28% of the stock is currently owned by institutional investors.
ABB Company Profile
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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