Analyst Note| Denise Molina, CFA |
Following ABB's recently released first quarter, including 7% organic revenue growth, details on the results show that the firm's 2021 revenue recovery to prepandemic levels is likely to be uneven divisionally. The company's end markets include some depressed ones like automotive, cruise ships, and oil and gas. However, those mask underlying solid growth, and EBITA margin expansion continues to track well--13.4% in the first quarter--increasing the likelihood that medium-term margins achieve the upper end of management's 13%-16% target. We will review our forecasts and expect to make around a 5% increase to our fair value estimate before currency effects. We maintain our wide moat rating.