The hiring of Sandvik (SVDKY) CEO Bjorn Rosengren has already started benefiting ABB (ABB),
with investors increasingly willing to give the company more benefit of
the doubt with respect to future margin improvement initiatives; so
much so that it was tempting to go with a “Bjorn Again” title for this
article. To be sure, Rosengren has proven his capabilities over his
career, with his recent performance at Sandvik offering an attractive
blueprint for ABB.
I’ve been bullish on ABB for a
while on its self-improvement potential, but I do have some concerns
that valuations for industrial stocks have gotten too frothy. I like
ABB’s exposures to broad markets like electrification and industrial
automation, and I see meaningful opportunities for the company to
improve its execution. Still, that won’t happen overnight, and I’m
concerned investors have overly high expectations for the entire sector.
ABB Offsetting Challenging Market Conditions With A Self-Improvement Story
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