ABM upgraded to Buy from Hold at Truist

Truist analyst Jasper Bibb upgraded ABM (ABM) to Buy from Hold with a price target of $58, up from $55. The stock has underperformed the S&P 500 by 20pts over the last 12 months following three consecutive misses on free cash flow, triggered by a disruptive ERP roll-out, but expectations and valuation are sufficiently low enough that the stock can outperform over the next 12 months if free cash flow conversion simply normalize toward historical level, the analyst tells investors in a research note. Consensus organic growth in the second half for ABM is also “conservative”, the firm added.