Shares of ABB India fell almost 3% after international brokerage UBS downgraded the stock from ‘buy’ to ‘neutral’. Despite the downgrade, UBS raised its target price for ABB India to ₹9,100 per share from ₹8,830.
Current Trading Status
At 11:40 am, ABB India shares were trading at ₹8,209.2 on the NSE, down 3% from the previous session.
Reasons for Downgrade
UBS cited limited room for a valuation re-rating but acknowledged that earnings would remain supportive. The brokerage identified two factors that could improve their outlook:
- Higher Quarterly Order Run-Rate: If ABB India’s mobility arm exceeds a quarterly order run-rate of ₹3,800 crore, earnings growth could improve.
- Strong Margins in Emerging Portfolio: Higher margins in the electrification segment could boost the firm’s overall margins.
Market Performance
Despite the recent drop, ABB India shares have surged 80% over the past year, compared to a 26% rise in the benchmark Nifty 50 index.
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