ABB Ltd : Is the distribution phase coming to an end ?
Entry price | Target | Stop-loss | Potential |
---|
CHF 47.19 |
CHF 51 |
CHF 45.6 |
+8.07% |
---|
The price of ABB Ltd shares is range-bound. This phase will end sooner or later when volatility comes back.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● According to MSCI, the company's ESG score for its industry is good.
Strengths● The opinion of analysts covering the stock has improved over the past four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses● The firm trades with high earnings multiples: 19.51 times its 2025 earnings per share.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The company is not the most generous with respect to shareholders' compensation.
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