NEW YORK — Bernstein Research maintained its Neutral rating on ABB Ltd with a price target of 80 Swiss francs, citing near-term support for data center equipment demand despite emerging risks of an inventory glut.
Analyst Varun Govindaraj and the research team released findings from a survey of 50 procurement executives in the data center construction sector. The results indicate that equipment manufacturers may continue to see strong demand in the short term. Even if data center expansion slows, stringent cancellation policies could still compel customers to take delivery of a portion of the equipment, effectively front-loading demand.
However, the analysts warned that this dynamic could lead to excess inventories of cooling and power supply systems once capital expenditure growth decelerates. Such an outcome would amplify the severity of a subsequent downturn in the sector, they noted.
The firm’s Neutral rating reflects a balanced view on ABB’s near-term prospects while highlighting the structural risks tied to potential demand pull-forward and inventory accumulation in the data center supply chain.
Bernstein’s assessment was published on August 20, 2026, and follows the release of the underlying research report earlier the same day.
