ABB Ltd (ABB) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of ABB Ltd (NYSE:ABB) from a hold rating to a sell rating in a report released on Tuesday morning.

According to Zacks, “Tough macroeconomic and geopolitical conditions have been plaguing ABB in recent times. Going forward, volatility in oil & gas markets and uncertainty in the process industries will likely be major headwinds for ABB. Also, lower capital spending in ABB’s key upstream energy end-markets will hurt its prospects. This apart, ABB will have to contend with escalating geopolitical tension triggered by the Brexit referendum and weakness in key end markets. In addition, a stringent competitive environment, volatility in raw material prices and dwindling customer expenditure are expected to add to the woes.On the positive side, ABB has a robust earnings surprise history over the trailing four quarters, having beaten estimates all through. Also, year to date, ABB’s shares have outperformed the Zacks classified Machinery Electric industry average return.”

A number of other research analysts have also issued reports on ABB. Robert W. Baird reaffirmed a buy rating and set a $29.00 target price on shares of ABB in a report on Wednesday, October 4th. BidaskClub lowered ABB from a buy rating to a hold rating in a report on Tuesday, August 1st. Morgan Stanley reaffirmed a buy rating on shares of ABB in a report on Tuesday, June 13th. Finally, UBS AG reaffirmed a sell rating on shares of ABB in a report on Monday, July 24th. Four analysts have rated the stock with a sell rating, six have issued a hold rating and five have given a buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $23.50.

ABB (NYSE ABB) traded up 0.299% during midday trading on Tuesday, hitting $25.155. 358,179 shares of the company traded hands. The stock has a 50 day moving average of $24.19 and a 200 day moving average of $24.24. The stock has a market cap of $54.54 billion, a P/E ratio of 24.234 and a beta of 1.06. ABB has a 12-month low of $20.26 and a 12-month high of $25.83.

ABB (NYSE:ABB) last released its earnings results on Thursday, July 20th. The industrial products company reported $0.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.33 by ($0.03). The firm had revenue of $8.45 billion for the quarter, compared to analyst estimates of $8.55 billion. ABB had a return on equity of 18.62% and a net margin of 6.87%. ABB’s revenue was down 2.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.35 earnings per share. Equities research analysts predict that ABB will post $1.23 EPS for the current fiscal year.

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Large investors have recently added to or reduced their stakes in the stock. Financial Architects Inc boosted its position in shares of ABB by 2,404.2% in the 2nd quarter. Financial Architects Inc now owns 4,182 shares of the industrial products company’s stock valued at $104,000 after purchasing an additional 4,015 shares during the period. Ledyard National Bank boosted its position in shares of ABB by 3.6% in the 2nd quarter. Ledyard National Bank now owns 4,350 shares of the industrial products company’s stock valued at $108,000 after purchasing an additional 150 shares during the period. Cubist Systematic Strategies LLC boosted its position in shares of ABB by 296.7% in the 2nd quarter. Cubist Systematic Strategies LLC now owns 4,800 shares of the industrial products company’s stock valued at $120,000 after purchasing an additional 3,590 shares during the period. Mountain Capital Investment Advisors Inc acquired a new position in shares of ABB in the 2nd quarter valued at $120,000. Finally, Huntington National Bank boosted its position in shares of ABB by 40.3% in the 2nd quarter. Huntington National Bank now owns 5,484 shares of the industrial products company’s stock valued at $137,000 after purchasing an additional 1,575 shares during the period. Institutional investors and hedge funds own 4.42% of the company’s stock.

About ABB

ABB Ltd (ABB) is a holding company. The Company’s segments include Electrification Products, Robotics and Motion, Industrial Automation, Power Grids, and Corporate and Other. It operates through four divisions: Electrification Products, Robotics and Motion, Industrial Automation and Power Grids. It is engaged in serving customers in utilities, industry and transport and infrastructure.

Analyst Recommendations for ABB (NYSE:ABB)

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