ABM Industries (ABM – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Andrew Wittmann from Robert W. Baird upgraded the rating on the stock to a Buy and gave it a $56.00 price target.
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Andrew Wittmann has given his Buy rating due to a combination of factors that suggest a positive outlook for ABM Industries. Despite a sharp negative market reaction to the F2Q25 report, Wittmann sees this as an opportunity, as the company’s organic growth rates have improved quarter-over-quarter, and future margins are expected to benefit from recent developments. Additionally, ABM Industries has secured strong new work and awards, which are likely to contribute to a record year.
Wittmann acknowledges the weak free cash flow (FCF) but attributes it to a cautious ERP implementation approach, which should improve AR collection potential in the future. The company’s future cash flow is expected to strengthen, with ABM maintaining its guidance and projecting significant FCF in the second half of 2025. Furthermore, the company’s attractive valuation, with a favorable revenue setup and potential for margin expansion, supports the Buy rating. Wittmann’s revised estimates for 2026 are above consensus, indicating potential upside for the stock.
In another report released today, UBS also upgraded the stock to a Buy with a $54.00 price target.