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The Bull Case For ABB (SWX:ABBN) Could Change Following Its Bet On Swedish Small Modular Reactors

Simply Wall St · 6d ago
  • In late 2025, Swedish utility Vattenfall and the Industrikraft i Sverige AB consortium, which includes ABB, agreed to co-invest about SEK 400 million in early-stage small modular reactor development at the Ringhals site via project company Videberg Kraft AB.
  • This move highlights ABB’s role in nuclear-related industrial partnerships, potentially broadening its footprint in electrification projects tied to Sweden’s fossil-free power ambitions.
  • We’ll now examine how ABB’s participation in Sweden’s small modular reactor initiative could influence its existing investment narrative around electrification and automation.

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

ABB Investment Narrative Recap

To own ABB, I think you need to believe in its role as a core supplier to the long-term electrification and automation build-out across utilities, industry and infrastructure. The Ringhals small modular reactor investment looks incremental rather than a major near term catalyst, with ABB’s key drivers still tied to grid upgrades and industrial automation, while the biggest current risk remains uneven demand in end markets such as automotive and China-related construction.

The recent Q3 2025 results, with revenue of US$9,083 million and net income of US$1,208 million, give some context for how a project like Videberg Kraft AB could slot into ABB’s broader mix of electrification and automation work. Against a record order backlog and ongoing investments in digital solutions, nuclear-related partnerships look more like an additional option on future grid and industrial spending than a swing factor for near term earnings.

Yet, despite these long-term themes, investors should still be aware of how prolonged weakness in key industrial and construction end markets 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 about a $1.3 billion earnings increase from $4.2 billion today.

Uncover how ABB's forecasts yield a CHF56.44 fair value, a 8% 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 CHF41.50 to CHF85.59, showing how far apart views on ABB’s worth can be. When you set that against ABB’s dependence on continued infrastructure and utility investment, it underlines why many investors look at several perspectives before forming a view on the company’s prospects.

Explore 8 other fair value estimates on ABB - why the stock might be worth as much as 40% more 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.