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Does MM like ABB after recent weakness?

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Does MM like ABB after recent weakness?

Can we please have an update on ABB. It bounced hard today (finally), but has otherwise been in free-fall to a perhaps surprising extent, closing at $1.95 a couple of days ago. I recall directors buying and MM liking it at considerably higher levels not too long ago. What are your views on the price action/extent of the fall in share price? Also, is ABB a stock that MM, if it did not already have a position, would have become even more keen on accumulating as the price fell to recent levels? Has MM in fact considered averaging down? Thanks Darren

Answer

Hi Darren,

It has indeed been a tough period for ABB with a number of earnings downgrades sending the stock down around 40% so far in 2022. Following last months result and subsequent share price decline, it is worth highlighting that all of ABB’s directors have bought stock in the market since, clearly a very good sign. On Friday they reconfirmed FY23 guidance and from speaking to management post their FY22 result, the guidance we believe could well be on the conservative side.

Our Emerging Companies Portfolio already holds a large 8% exposure to Aussie Broadband (ABB) hence we are not likely to increase this exposure but we do still like the stock at current levels and would in all likelihood buy if we had no position.

 

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Aussie Broadband (ABB)
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