Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.
Recent performance snapshot for ABB shares
ABB (SWX:ABBN) has drawn fresh attention after a strong run, with the stock showing double digit gains over the past month and the past 3 months, prompting investors to reassess its recent performance.
See our latest analysis for ABB.
At a share price of CHF82.02, ABB’s recent momentum is clear, with a 30 day share price return of 17.0% and a 1 year total shareholder return of 84.68% pointing to stronger sentiment around its electrification and automation exposure.
If ABB’s recent run has you thinking about where else capital could work hard in automation and infrastructure, it may be worth scanning 32 robotics and automation stocks
With ABB now trading at CHF82.02 after strong recent returns and sitting above the average analyst price target, the key question is whether the current price still leaves room for upside or if the market is already pricing in future growth.
Most Popular Narrative: 31.4% Overvalued
With ABB closing at CHF82.02 against a narrative fair value of CHF62.40, the current price sits well above what this widely followed view considers reasonable. This puts the focus on the assumptions behind that gap.
Banks and research houses have recently updated their views on ABB, with several CHF 5 price target increases and rating changes feeding into the higher fair value estimate. Here is how the Street seems to be framing the risk and reward right now.
Want to see what is driving that higher fair value even as growth expectations and required returns both shift? The key ingredients sit in earnings, margins and the future P/E the narrative leans on to justify its view.
Result: Fair Value of CHF62.40 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this narrative can be challenged if weakness in key end markets persists or if rising competition in robotics and China pressures margins more than expected.
Find out about the key risks to this ABB narrative.
Next Steps
With the story so split between risks and rewards, you do not need to sit on the fence. Review the full picture for yourself with 3 key rewards and 1 important warning sign
Looking for more investment ideas?
If ABB has sharpened your focus, do not stop here. Use the Simply Wall St Screener to uncover other stocks that could fit your goals before others spot them.