Analyst Note| Denise Molina, CFA |
ABB's shares offer around 9% upside to our CHF 35 fair value estimate. Fourth-quarter and full-year results were in line with our expectations. ABB reported 17% and 8% organic order and revenue growth, respectively, for the full year. Higher plant utilization rates, price increases and productivity gains from the restructuring program boosted the group-adjusted EBITA margin by 310 basis points to 14.2% for 2021. In the medium term, demand for electrification and automation solutions and ongoing restructuring, so far credibly executed, leads us to a 9% CAGR forecast for operating profits over the next three years. We maintain our wide moat rating.