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ABB shares return to increase before the Investor Day analyst News

Friday, September 1st, 2017 | Economy

It is as if a curse on the stock of ABB charged: At the latest at 25 francs each sell more sales and the courses are slipping. This has been the case for years.
Just a few months ago everything looked as if a move into the region from 25 to 30 francs was imminent. Today, however, we are smarter than the other three. For again, the power was not enough. Next Tuesday, the industrial group from Zurich will be inviting for this year's Investor Day in Detroit, Michigan.
Course performance disappointed since January
If you believe in the industry analyst working for Great Britain's Barclays, the company will be showing off its best side next week. He sees ABB not only accelerating sales growth over the coming years, but also expects substantial marginal improvements.
In the course of this, the analyst sees the stock rise to 26 francs, which is why he reaffirms his "overweight" purchase recommendation. After price quotations fell from 24.89 Swiss francs in the middle of May, a straight-line gain of 3.4 percent has been achieved since the beginning of the year. By way of comparison, the Swiss Performance Index (SPI) rose by almost 14 percent during the same period.
Better second half of the year expected
According to the Barclays analyst, however, the position of the traditional industrial group in the process automation and in the case of industrial obsolete on the stock exchange is underestimated. He is also pleased to see the Bernecker + Rainer (B & R) takeover of Bernecker + Rainer, which is not undisputed.

Who did not act actively in recent years, earned little with the ABB share (Source: www.cash.ch)
After a strong first half-year, the analyst expects a better second half of the year. This applies in particular to the development of margins. The latter was disappointing in the first six months.
Do the two main shareholders raise the pressure?
On the other hand, other professional colleagues estimate the situation at ABB more cautiously and see a growth and maritime transition year for the industrial group from Zurich in 2017. Of 24 analysts covering the company therefore advise five on the purchase of the share. Four times is even to the sale of the latter advised, as surveys of the news agency AWP show. The price targets range from 17.65 francs (Jefferies) to 26.50 francs (Merrill Lynch).
ABB's key figures at a glance:



Price-earnings ratio



dividend yield

3.6 percent

3.7 percent

sales growth

3.2 percent

6.1 percent

Operating margin (EBITA)

12.7 percent

13.6 percent

(Source: Barclays Capital, estimates)
One of the main attractions of the ABB share is the above-average dividend yield. In addition, the company purchases its own shares. However, the main shareholders, Investor AB and Cevian Capital, could exert pressure on the industrial group. Together, they put a good 16 percent of all votes on the scales. Both financial investors are rumored to be buying back additional titles, especially as Cevian Capital is sometimes deaf with the demand for a spin-off of the power transmission business to the board of directors.


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