ABB Ltd. (ABB) Cut to Sell at Zacks Investment Research
ABB Ltd. (NYSE:ABB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday.
According to Zacks, “ABB has a decent earnings history, with three beats and one miss in the four trailing quarters, for an average surprise of 19.1%. ABB’s results are benefiting from diligent cost savings and higher efficiency as a result of restructuring. Nevertheless, 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. ABB’s recent decision to retain its Power Grids business, its least profitable unit, will increase the pressure on ABB to improve its performance. In addition, a stringent competitive environment, volatility in price of raw materials and dwindling customer expenditure are expected to add to the woes.Also, poor sales and higher restructuring costs are a concern.”
Other analysts have also recently issued research reports about the stock. HSBC cut shares of ABB from a “buy” rating to a “hold” rating in a research report on Friday, August 19th. Deutsche Bank AG upgraded shares of ABB from a “sell” rating to a “hold” rating in a research report on Friday, July 22nd. Bank of America Corp. set a $23.00 price objective on shares of ABB and gave the company a “hold” rating in a research report on Tuesday. Robert W. Baird upped their price objective on shares of ABB from $21.00 to $24.00 and gave the company a “neutral” rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating on shares of ABB in a research note on Monday, June 13th. Four investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $23.75.
ABB (NYSE:ABB) opened at 22.87 on Thursday. The company has a market capitalization of $48.64 billion, a price-to-earnings ratio of 29.66 and a beta of 1.20. The firm’s 50-day moving average price is $22.26 and its 200 day moving average price is $20.87. ABB has a 12-month low of $15.74 and a 12-month high of $22.89.
ABB (NYSE:ABB) last released its quarterly earnings data on Thursday, July 21st. The company reported $0.35 EPS for the quarter, beating the Zacks’ consensus estimate of $0.26 by $0.09. ABB had a net margin of 4.91% and a return on equity of 16.86%. The business earned $8.68 billion during the quarter, compared to analysts’ expectations of $8.83 billion. During the same quarter in the prior year, the company earned $0.33 EPS. The firm’s quarterly revenue was down 5.3% on a year-over-year basis. On average, equities research analysts expect that ABB will post $1.08 EPS for the current fiscal year.
Large investors have recently modified their holdings of the stock. Franklin Resources Inc. boosted its stake in shares of ABB by 4.3% in the first quarter. Franklin Resources Inc. now owns 547,925 shares of the company’s stock worth $10,641,000 after buying an additional 22,423 shares during the last quarter. BlackRock Institutional Trust Company N.A. purchased a new stake in shares of ABB during the first quarter worth about $150,000. JPMorgan Chase & Co. boosted its stake in shares of ABB by 0.9% in the first quarter. JPMorgan Chase & Co. now owns 2,288,935 shares of the company’s stock worth $44,451,000 after buying an additional 21,284 shares during the last quarter. M&T Bank Corp boosted its stake in shares of ABB by 4.9% in the first quarter. M&T Bank Corp now owns 86,138 shares of the company’s stock worth $1,672,000 after buying an additional 4,017 shares during the last quarter. Finally, Diversified Investment Strategies LLC boosted its stake in shares of ABB by 0.4% in the first quarter. Diversified Investment Strategies LLC now owns 146,025 shares of the company’s stock worth $2,836,000 after buying an additional 625 shares during the last quarter. 3.27% of the stock is currently owned by institutional investors.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for ABB Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ABB Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.