Key insights
- Kepler Cheuvreux downgraded ABB to Hold due to valuation concerns after a 30% YTD share price increase. While raising EBITA forecasts and acknowledging ABB's strengths, the firm believes the current P/E ratio of 30 reflects the company's potential. This signals a minor bearish sentiment towards ABB's near-term stock performance, potentially impacting US investors holding the NYSE-listed shares.
Investing.com - Kepler Cheuvreux downgraded ABB Ltd (SIX:ABBN) (NYSE:ABB) to Hold from Buy while raising its price target to CHF80.00 from CHF75.00.
The firm raised its group adjusted EBITA forecasts by approximately 5% for the period 2026-2028 following the company’s first-quarter 2026 results. The upward revision reflects continued demand strength across ABB’s Electrification division, strength in North American markets, positive price evolution and execution within the businesses.
Kepler Cheuvreux’s estimates remain slightly above available consensus. The firm noted ABB’s streamlined portfolio, leading technology and market positions, and alignment with strong structural demand around electrification ensure an attractive long-term investment.
The company’s robust balance sheet and disciplined approach to capital allocation offer scope for additional growth, according to the research firm.
The downgrade follows a 30% share price increase since the start of the year. At approximately 30 times price-to-earnings ratio, ABB’s potential appears captured in the current price, Kepler Cheuvreux said.
In other recent news, Volatus Aerospace Inc. announced it has secured a multi-year NATO training contract valued up to C$2.1 million. The contract, obtained through a competitive procurement process, initially spans two years with options for renewal. Additionally, Volatus Aerospace has signed a Memorandum of Understanding with Sentinel R&D Inc. to develop an interceptor unmanned aerial vehicle platform. This collaboration will see Sentinel providing engineering and design expertise, while Volatus will handle systems integration and commercialization. In another development, Volatus has partnered with the University of Technology, Jamaica to offer drone training programs starting in April 2026, focusing on disaster preparedness and response. Furthermore, Volatus Aerospace has appointed Major General (Ret’d) Peter M. Fesler to its Advisory Board, bringing his extensive military experience to the company. Meanwhile, Barclays has upgraded ABB Ltd’s stock rating from Underweight to Equalweight, citing its significant exposure to energy and liquefied natural gas capital expenditure.
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