ABB Forecasts, Price Objective Revised as BofA Notes Strong Data Center Order Momentum

08:40 AM EDT, 09/08/2026 (MT Newswires) -- BofA Global Research revised its forecasts for ABB (ABBN.SW, ABB.ST) on the back of sustained robust demand at the company's Electrification segment amid strong data center orders. "We raise our ABB forecasts for 2027-28 following continued evidence that Electrification demand remains stronger and more durable than the market expected, supported by robust order momentum from data centre, utility and broader power infrastructure projects. We continue to assume some moderation in growth rates on orders into 2027 as ABB laps an exceptionally strong demand environment, the rebasing of orders implies stronger Electrification growth than consensus is currently expecting," the research firm said in a report on the pan-European capital goods sector published Tuesday. "We assume that the orders growth rates normalise over the next few years post the 2026 rebasing, but even with a sequential normalization it's clear that there is a significant step up in revenue growth coming for ABB into 2027-28." Revenue projections for 2027 and 2028 were lifted by 0.8% and 3.5%, respectively, while the estimate for 2026 was nudged down 0.1%. Analysts also made changes to their EPS assumptions over the three-year period. Meanwhile, BofA cut the price objective to 81 francs from 86 francs as it reduced its target multiple, taking into account strong order momentum, continued execution, and re-rating at the Switzerland-based electrification and automation group's peers. The stock has a neutral rating.