ABB: Oddo BHF downgrades buy rating
(CercleFinance.com) - An analyst at Oddo BHF today said that he has downgraded the ABB Group share from “buy” to “neutral,” with the group facing the prospect of a new transition phase linked to the restructuring that will at least last until 2020, accompanied with risks of execution, punctual costs and a cyclical slowdown.
The analyst has "sharply" cut his estimates, and highlights the consensus' downward trend. Even though this situation is necessarily atypical because of the size of the divestment of PG, unfortunately ABB has a history of piling up of extraordinary costs which weighs on results over the long term, the broker laments.
Oddo BHF has therefore sets its target price for the share at 19 Swiss francs, meaning limited upside potential of 2%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The analyst has "sharply" cut his estimates, and highlights the consensus' downward trend. Even though this situation is necessarily atypical because of the size of the divestment of PG, unfortunately ABB has a history of piling up of extraordinary costs which weighs on results over the long term, the broker laments.
Oddo BHF has therefore sets its target price for the share at 19 Swiss francs, meaning limited upside potential of 2%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.