ABB Price Target, Estimates Revised as RBC Notes 'Strong' Q2, Rotork Deal

08:50 AM EDT, 07/21/2026 (MT Newswires) -- RBC Capital Markets revised its price target and forecasts for ABB (ABBN.SW, ABB.ST), taking into account the company's second-quarter results and planned acquisition of industrial valve manufacturer Rotork. "ABB delivered very strong Q2 headline growth and margin numbers, but disappointed with high corporate costs that led to an overall earnings miss. In addition, we argue that ABB paid full price for Rotork (ROR.L) at USD5.5bn as the investment's return trails that of ABB core," analysts said Tuesday, but noted that the deal "makes strategic sense" for the electrification and automation group. "We tweak our earnings estimates for FY2026, reflecting moderate headwinds in price/cost, some project push-outs (Motion/traction) and higher impairments. We raise estimates for 2027/28 by 3-6%, which slightly lifts our DCF/SotP based [price target] to CHF83 (old: CHF81)," RBC added. For 2027, the group sales and net income projections were lifted by 4% and 3%, respectively, while the estimate for adjusted EPS from continuing operations was increased by 5%. The sector perform recommendation on the stock was retained.