Goldman downgrades ABB to Neutral following recent outperformance

Goldman Sachs analyst Daniela Costa downgraded ABB (ABBNY) to Neutral from Buy with a CHF 52 price target The firm says the stock’s valuation no longer screens as attractive following the recent outperformance, noting that its previous Buy rating was predicated on the view that ABB would outperform the sector on organic growth due to medium voltage and process automation exposure and that its high ROIC and margin opportunity were underappreciated by the market. After strong margin improvement over the past four years, the stock has re-rated from a 1% discount to the sector to a 34% premium, the analyst tells investors in a research note.