UBS downgraded ABM (ABM) to Neutral from Buy with a price target of $51, down from $55. The stock’s near-term performance could be tempered by the company’s “flattish” margin trajectory and limited incremental capital deployment optionality, the analyst tells investors in a research note. The firm says that while ABM is delivering on stronger organic growth, business services stocks work best when organic growth is accompanied by margin expansion and capital deployment. The company’s fiscal 2026 guidance for flat margin and the announcement of the WGNSTAR acquisition limit both, adds UBS.
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