ABB: Oddo raises target price
(CercleFinance.com) - Oddo believes that Q2 came in well above expectations (revenues 10% higher, operational EBITA 46%), despite the full impact of COVID-19.
However, demand remains weak ABB says, which in this context, is not providing any quantified guidance.
We now expect annual revenues to fall by 7% LFL, with an operating margin that is down -50 bp to 10.6% - it previously estimated -10% and -180 bp/9.3% respectively, Oddo said.
Regarding its FCF, the group had a highly satisfactory Q2 (+544 million dollars) and says that it is aiming for a "resilient" year. Oddo expects 1.5 billion dollars, as in 2019, it adds.
Oddo has raised its target price from 19 Swiss francs to 20 Swiss francs (current price 24 Swiss francs), although confirms its reduce rating on the share.
Copyright (c) 2020 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.
However, demand remains weak ABB says, which in this context, is not providing any quantified guidance.
We now expect annual revenues to fall by 7% LFL, with an operating margin that is down -50 bp to 10.6% - it previously estimated -10% and -180 bp/9.3% respectively, Oddo said.
Regarding its FCF, the group had a highly satisfactory Q2 (+544 million dollars) and says that it is aiming for a "resilient" year. Oddo expects 1.5 billion dollars, as in 2019, it adds.
Oddo has raised its target price from 19 Swiss francs to 20 Swiss francs (current price 24 Swiss francs), although confirms its reduce rating on the share.
Copyright (c) 2020 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.