ABB ADR

ABB had experienced a strong start to 2023 with an all-around beat. Revenue growth was robust, with comparable double-digit increases in each business area. Customer activity was strong and despite a very high comparison from the previous year, order intake increased with a positive development. While Robotics and Discrete Automation improved the orders consecutively, they declined compared to the last year. Particularly strong momentum can be seen in Process Automation, with recent orders reaching the highest levels. ABB improved the Operational EBITA and the margin was up. The cash flow was seen to improve from the previous year. From operating activities, cash flow was strong. The balance sheet of ABB proved strong enough to support both acquired and organic growth, a sustainable, rising dividend per share, and utilizing share buybacks. A new buyback program was launched in April 2023. Moreover, ABB defined a new emissions reduction target for its supply chain. We give ABB a ‘Hold’ rating with a revised target price.