ABB Posts Solid 2022 Results, but Order Growth Returns From Above-Average Levels

ABB's full-year 2022 results were broadly in line with our expectations with revenue in line and EPS slightly above our forecast due to items below the operating income line. Free cash flow was lower than our forecasts due to above-normal inventory levels to manage high order growth against supply chain challenges. We continue to see medium-term demand prospects, supported by ABB’s customers investing in energy management and automation solutions. We retain our wide moat rating and $35 fair value estimate.