josefkubes
ABB (OTCPK:ABBNY) (OTCPK:ABLZF) (NEOE:ABB:CA) is a company that we have been following for a long time, and we wrote our first article here in 2019 with an optimistic view on its future prospects, despite having
ABB: Unlocking Value By Mirroring GE's Spin-Off Success
Summary
- ABB is well-positioned for growth due to secular megatrends like electrification, automation, and robotics, despite recent share price declines and macroeconomic uncertainties.
- The planned spin-off of ABB's robotics business aims to unlock value, similar to GE's breakup strategy, potentially leading to higher valuation multiples.
- ABB's financial performance shows improved profitability and strong order growth, but revenue growth is slowing, and macroeconomic challenges persist.
- Given the current valuation and structural tailwinds, ABB's shares are now rated "Hold" instead of "Sell," reflecting a balanced risk-reward profile.
Fin-tech startup leveraging machine learning technology to discover investing opportunities and to generate growth-optimal portfolios. Publisher of the WideAlpha AI-Selected Index, which has markedly outperformed its benchmark.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling shares, you should do your own research and reach your own conclusion, or consult a financial advisor. Investing includes risks, including loss of principal.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.