Sell ABB: Indiabulls Securities

ALSO READ See previous views by Indiabulls Securities Research See what other Experts & Brokerages are saying about ABB See messages about ABB ABB BSE | NSE 10/02/12 Are Mutual Funds betting on ABB?

Indiabulls Securities Research has come out with a research report on ABB . The research firm has downgraded rating from hold to sell on the stock, in its report dated November 18, 2009.

"We believe that the demand outlook for the power sector remains strong in the-near-to-medium term however we believe the Company has to improve its performance in the power segment. In addition, we believe that the company's margins would witness pressure in coming quarters. We have valued ABB by using a combination of the discounted cash flow (DCF) model and the Peer-based Multiple method. We have assigned subjective weights of 70% to our DCF and 30% to our Peer-based multiple methodologies for calculating the fair value estimate. This valuation model yields a fair value of Rs 695 per share, which provides for 10% downside from the CMP of Rs 772.75. Thus, we downgrade our rating from hold to sell on the stock", says Indiabulls Securities Research.

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