Truist downgraded ABM (ABM) to Hold from Buy with a price target of $47, down from $58. The firm sees a lack of catalysts for the shares and believes the company’s fiscal Q1 is “slightly mismodeled” by the Street. ABM’s free cash flow should return to an “effectively normal conversion rate” in fiscal 2026 as the company laps disruption to its billings in fiscal 2025, the analyst tells investors in a research note. In addition, Truist believes the Q1 revenue consensus could be $15M-$20M too high as some analysts appear to not factor for a 1.5% year-over-year headwind from one fewer working day.
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