UBS has maintained its neutral stance on ABB, setting a target price of ₹9,100, which implies a potential upside of 24% from the current market price of ₹7,330. In Q3 CY24, ABB’s results fell short of consensus estimates, with topline and EBITDA missing by 11% and 5%, respectively. However, the company managed a 110 basis point beat on EBITDA margins.
UBS noted that muted execution in the process automation segment contributed to the revenue miss, but it also sees potential for margin improvement in the future. ABB’s performance in margins suggests resilience and potential upside as pricing adjustments take effect.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
