ABB Increases Holding in Chargedot to 80%

ABB (ABB) has increased its stake in Chinese EV charging provider Chargedot Shanghai New Energy Technology from 67% to 80%. The financial terms of the deal remain under wraps. ABB shares rose 2.39% to close at $34.77 on January 31.

ABB is a Swiss company that designs, manufactures, and sells electrification, industrial automation, and robotic products. ABB’s upcoming earnings report for Q4 2021 is scheduled for February 3, 2022. 

ABB Investment

The increased stake in Chargedot is expected to strengthen ABB’s position in China’s rapidly growing e-Mobility market. Last year, Chinese EV sales rose for the seventh consecutive year to more than 3.5 million from 1.6 million sold in 2020.

The increased investment comes amid strong Chinese demand for high-powered charging solutions. ABB sees an opportunity to leverage its global experience to support Chinese customers and strengthen its position in the e-mobility sector.

Since ABB began investing, Chargedot’s business has registered strong double-digit growth. Its investments have gone a long way in enhancing the development of safe, smart, and sustainable charging hardware and software solutions.

Stock Rating

Last month, Kepler Capital analyst Torsten Sauter reiterated a Buy rating on ABB stock with a $36.50 price target, implying 4.99% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 2 Buys. The average ABB price target of $36.50 implies 4.98% upside potential to current levels.

Download the TipRanks mobile app now.

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure.

Related News:
Pearson Buys Certification Company Credly
Cascades Revises Outlook for Q4 2021; Shares Fall
Scotiabank Included in Bloomberg Gender-Equality Index