(CercleFinance.com) – With a gain of almost 2%, ABB shares posted the second largest increase in the SMI index of the Zurich Stock Exchange on Wednesday, driven by an increase in opinion from RBC analysts.
In a note released in the morning, the Canadian broker now says to display an “overweight” opinion on the title of the Swiss engineering group, against “performance in line with the sector” so far.
Its new target price of 41 Swiss francs, against 30 Swiss francs previously, shows an upside potential of around 20%.
‘With only two disposals of activities remaining to be finalized, ABB will complete its reorganization this year’, recalls the broker in its study.
While he admits he was skeptical of the very Scandinavian approach used by chief executive Bjorn Rosengren, RBC acknowledges that his approach was the right one.
“We see this slimmed-down ABB group in a very good position to capture value in the transport electrification and industrial automation markets,” he explains.
And while he expects the 4th quarter release to be hardly bright, the broker points out that it could be a good buying opportunity.
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