ABB: Unlocking Value By Mirroring GE's Spin-Off Success

2025-04-20 22:49:21 ET

Summary

• ABB is well-positioned for growth due to secular megatrends like electrification, automation, and robotics, despite recent share price declines and macroeconomic uncertainties.
• The planned spin-off of ABB's robotics business aims to unlock value, similar to GE's breakup strategy, potentially leading to higher valuation multiples.
• ABB's financial performance shows improved profitability and strong order growth, but revenue growth is slowing, and macroeconomic challenges persist.
• Given the current valuation and structural tailwinds, ABB's shares are now rated "Hold" instead of "Sell," reflecting a balanced risk-reward profile.

ABB ( OTCPK:ABBNY ) (ABLZF) (ABB:CA) is a company that we have been following for a long time, and we wrote our first article here in 2019 with an optimistic view on its future prospects, despite having previously delivered what was basically a lost decade for investors....

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