ABB gave a strong quarterly performance with an all-around beat driven by growing revenues and comparable orders as well as improvements in operational EBITDA. In the quarter, it achieved good price management and executed well on the increased volumes. The growth engine for orders was the American region, whereas the growth in Africa, the Middle East, and Asia remained largely stable. The strong price execution of ABB, along with increased volumes, was the reason for its higher gross margin. However, cash flow in the quarter did not meet the expectations of the management. In most customer segments, customer activity improved a bit or remained stable except for the decline related to discrete manufacturing and residential construction. Partnering with the Swedish smelting and mining company named Boliden, ABB took a step forward to achieve its 2030 target of possessing a circular approach in 80% of its solutions and products. Overall, we give the company a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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