Citigroup ups ABB to 'buy' on growth potential

Legrand SA

21/07/2025 08:13

** Citigroup upgrades Swiss engineering group ABB ABBN.S to "buy" from "hold" on expected higher growth, margin and return on capital employed (ROCE) following the planned spin-off of its robotics unit in 2026

** ABB's stock is up 1.3% at 0707 GMT

** Citi says it sees the potential for ABB to lift its organic sales growth target to 6-8% from 5-7%

** Citi also foresees the group's margin target rising to at least 18-21% from 16-19% on what it calls a more focused portfolio

** About one-third of the Electrification unit's revenue has "double-digit top line potential" driven by datacentre and utility demand, the broker adds

** The broker also raises its PTs on peers Schneider Electric SCHN.PA and Legrand LEGD.PA, keeping its "buy" rating on higher growth expectations

(Reporting by Maria Rugamer)

((Maria.Rugamer@thomsonreuters.com))