UBS Upgrades ABM Industries (ABM) to Buy

UBS analyst Joshua Chan upgraded ABM Industries (NYSE: ABM) from Neutral to Buy with a price target of $54.00 (from $50.00).

The analyst comments: "We are upgrading ABM to Buy with a $54 price target. Shares were -9% on Friday after
FQ2 results and reiterated guide, but we believe underlying business outlook has improved. Notably, the B&I segment (~50% of sales) re-accelerated to growth (+2.6%) in FQ2 for the first time in 2+ years as office backdrop stabilizes (positive net absorption over last 4 quarters). ABM’s largest segment turning from negative to positive growth has a meaningful impact to overall outlook, and we raise our F2026 EBITDA estimate by +2% post quarter. Against this, stock was -9% which seems overdone with several transitory issues (lack of guidance raise, ATS margins, FCF) impacting. We see stock pullback against better outlook creating a new opportunity here."

For an analyst ratings summary and ratings history on ABM Industries click here. For more ratings news on ABM Industries click here.

Shares of ABM Industries closed at $46.61 yesterday.

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