ABB: Oddo confirms rating after meeting

(CercleFinance.com) - Oddo has given an update on the ABB shares following a meeting in Zurich before the sale of Power Grids to Hitachi.


Following this day, the broker confirms its buy rating on the stock, along with its target price of 25.50 Swiss francs.

Oddo says that the group's 3 remaining divisions will be split into 4 from April: Motion benefits from its size and value-added solutions to achieve strong margins, while Robotics & Discrete Automation now includes two very dynamic entities (robots and B&R), while Industrial Automation is refinding its focus in process industries and is operating with low capital employed. Finally, Electrification (low and medium voltage) has the potential for growth, as well as margin, with the integration of GEIS.

Oddo states that the group's medium-term target (unchanged since December) include 3%-6% growth p.a., hence reaching an operating EBITA margin of 13%-16%, ROCE of 15%-20% and FCF of around 100% of the group's net profit.



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