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How Investors May Respond To ABB (SWX:ABBN) Winning Canada’s Lunar Rover Spectrometer Concept Contract

Simply Wall St · 1d ago
  • In mid-December 2025, the Canadian Space Agency awarded ABB a contract to develop the concept for the Autonomous Lunar Exploration Infrared Spectrometer (ALExIS) for Canada’s Lunar Utility Rover, adapting its industrial Fourier Transform Infrared Spectrometer technology to analyze the Moon’s soil chemistry.
  • This project highlights ABB’s space instrumentation expertise and extends its optical payload footprint from Earth-orbiting satellites to future lunar surface exploration, deepening its role in resource-focused space missions.
  • We’ll now examine how ABB’s ALExIS lunar spectrometer work, leveraging its FTIR heritage, may influence the company’s broader investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

ABB Investment Narrative Recap

To own ABB, I think you have to believe in its core electrification and automation businesses, underpinned by structural demand for grid upgrades, data centers and industrial efficiency. The ALExIS lunar spectrometer contract showcases ABB’s space instrumentation capabilities, but it looks immaterial to near term revenue and does not alter the main catalyst of order growth in electrification, or the key risk of cyclical weakness in end markets such as China-heavy industrial segments.

Among recent announcements, the agreement to acquire IPEC, a UK electrical diagnostics specialist, feels more directly connected to ABB’s core thesis. It builds on the push toward higher margin, digitally enabled service and predictive maintenance, which ties into the catalyst of expanding embedded intelligence across ABB’s installed base, while still leaving the company exposed to any slowdown in infrastructure and utility investment cycles.

Yet even with these growth drivers, investors should be aware that ABB’s reliance on continued infrastructure and long term utility demand could...

Read the full narrative on ABB (it's free!)

ABB's narrative projects $39.3 billion revenue and $5.5 billion earnings by 2028. This requires 5.4% yearly revenue growth and a $1.3 billion earnings increase from $4.2 billion today.

Uncover how ABB's forecasts yield a CHF56.44 fair value, a 3% downside to its current price.

Exploring Other Perspectives

SWX:ABBN 1-Year Stock Price Chart
SWX:ABBN 1-Year Stock Price Chart

Eight fair value estimates from the Simply Wall St Community span roughly CHF 41 to CHF 86, showing how far opinions can stretch on ABB’s worth. Against that backdrop, the key catalyst of growing electrification and data center demand, alongside the risk of weaker end markets and competition in China, gives you several angles to explore before deciding how ABB might fit into your portfolio.

Explore 8 other fair value estimates on ABB - why the stock might be worth 29% less than the current price!

Build Your Own ABB Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your ABB research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
  • Our free ABB research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ABB's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.