Sell ABB with a 12-month target at Rs 995: Deutsche Bank

Deutsche Bank retains their sell rating on ABB with a 12-month target price of Rs 995 post Q4 results. ABB India results with a net profit of Rs 71crore, up 31 per cent YoY did not really surprise positively.

Firstly, the company's impressive gains on gross margins (up 157 bps YoY to 15 year highs) are getting diluted by the sharp rise in overheads, said the global investment bank.

"Lack of order inflows and company's continued market share loss in new demand segments like renewables or traditional areas like power transmission and distribution implies limited earnings growth in near term," it said.