ABB India slides most in 4 months on ICICI, Nomura rating cuts

ABB India

18/04/2024 10:47

** ABB India's shares  ABB.NS  slide over 4%, most on Nifty
100  .NIFTY100 , after two rating cuts
    ** Stock set for biggest one-day drop in four months
    ** ICICI Securities downgrades to 'sell', while Nomura cuts
to 'neutral' from 'buy' -LSEG data
    ** ICICI says while order inflows were strong, share of
long-lead orders has jumped to 15% in 2023 from 7% in 2022
    ** Expects orders to be "sub–par" in 2024 given the
uncertainty over next 1-2 qtr due to general elections
    ** Notes stock's sharp 45% surge in two months means it's
trading at ~81x CY25E EPS vs avg historical 2-yr fwd PE of 60x
    ** ICICI's PT is 5,330 rupees, while Nomura hikes PT to
6,660 rupees; stock last trading at ~6,365 rupees
    ** Avg rating of 24 analysts is 'hold' and median PT is
5,275 rupees -LSEG data

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))