ABB Ltd

ABBN: XSWX (CHE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	QQj	LOCK\|>$	LOCK\|rP&X$k

ABB Earnings: Secular Growth Within Electrification Segment Underpins Record EBITA Margin

Matthew Donen

Oct 17, 2024

We’re maintaining our CHF 40.50 per share fair value estimate for wide-moat ABB, following its solid third-quarter results that saw operating EBITA exceed company-compiled consensus. Operating EBITA margin expanded by 160 basis points to a record 19.0%, 70 basis points ahead of consensus, underpinned by secular growth themes supporting pricing and volume growth within ABB's electrification segment. Management lifted its full-year operating EBITA forecast to slightly above 18%, having raised its guidance earlier in the year to 18%. The share price is largely unchanged intraday and appears richly valued.

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ABB Ltd

ABB Earnings: Secular Growth Within Electrification Segment Underpins Record EBITA Margin

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