ABB Ltd (NYSE:ABB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Tough macroeconomic and geopolitical conditions have been plaguing ABB in recent times. Going forward, volatility in oil & gas markets and uncertainty in the process industries will likely be major headwinds for ABB. Also, lower capital spending in ABB’s key upstream energy end-markets will hurt its prospects. This apart, ABB will have to contend with escalating geopolitical tension triggered by the Brexit referendum and weakness in key end markets. In addition, a stringent competitive environment, volatility in raw material prices and dwindling customer expenditure are expected to add to the woes.On the positive side, ABB has a robust earnings surprise history over the trailing four quarters, having beaten estimates all through. Also, year to date, ABB’s shares have outperformed the Zacks classified Machinery Electric industry average return.”
Other research analysts have also issued reports about the company. BidaskClub lowered ABB from a “strong-buy” rating to a “buy” rating in a research note on Monday, July 24th. Robert W. Baird restated a “buy” rating and issued a $29.00 target price on shares of ABB in a research note on Wednesday, October 4th. Morgan Stanley restated a “buy” rating on shares of ABB in a research note on Thursday, June 22nd. Finally, UBS AG restated a “sell” rating on shares of ABB in a research note on Monday, July 24th. Four equities research analysts have rated the stock with a sell rating, six have given a hold rating and five have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $23.50.
ABB (NYSE:ABB) last issued its earnings results on Thursday, July 20th. The industrial products company reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.33 by ($0.03). The firm had revenue of $8.45 billion during the quarter, compared to analyst estimates of $8.55 billion. ABB had a net margin of 6.87% and a return on equity of 18.62%. The business’s revenue for the quarter was down 2.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 earnings per share. Equities analysts expect that ABB will post $1.23 earnings per share for the current year.
A number of large investors have recently made changes to their positions in the business. Eqis Capital Management Inc. grew its position in ABB by 11.5% in the third quarter. Eqis Capital Management Inc. now owns 51,733 shares of the industrial products company’s stock valued at $1,280,000 after acquiring an additional 5,336 shares during the period. Advisory Services Network LLC grew its position in ABB by 25.7% in the second quarter. Advisory Services Network LLC now owns 14,010 shares of the industrial products company’s stock valued at $349,000 after acquiring an additional 2,864 shares during the period. Dynamic Technology Lab Private Ltd grew its position in ABB by 14.0% in the second quarter. Dynamic Technology Lab Private Ltd now owns 20,701 shares of the industrial products company’s stock valued at $516,000 after acquiring an additional 2,548 shares during the period. Mountain Capital Investment Advisors Inc bought a new stake in ABB in the second quarter valued at $120,000. Finally, Schafer Cullen Capital Management Inc. grew its position in ABB by 2.0% in the second quarter. Schafer Cullen Capital Management Inc. now owns 3,686,628 shares of the industrial products company’s stock valued at $91,797,000 after acquiring an additional 73,112 shares during the period. Hedge funds and other institutional investors own 4.42% of the company’s stock.
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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