(CercleFinance.com) – Royal Bank of Canada on Wednesday renewed its ‘outperformance’ opinion as well as its price target of 37 Swiss francs on ABB following the publication of a Bloomberg article mentioning the project, by the engineering group Swiss-Swedish company, to sell its Power Conversion branch by the end of the year.
In a research note, the analyst recalls that the sale of this subsidiary, which manufactures inverters and power conditioning systems for telecom operators and technology companies, is one of three disposal projects planned this year. .
RBC explains that ABB also intends to separate from its turbocharger division, dubbed ‘Accelleron’, via a spin-off scheduled for October 3 and to publicize its e-mobility business, whose IPO has been postponed for the time being. .
According to calculations by the financial intermediary, Power Conversion’s income represents around 1% of the group’s total turnover, which could value the subsidiary at nearly 900 million e dollars.
While acknowledging that this is all part of the company’s valuation, RBC stresses that this disposal project is part of ABB’s strategy of simplifying its portfolio of activities.
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