ABM Industries shares decline after acquisition announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18 Dec 25
Source: NASDAQ.COM
ABM Industries Inc shares fell by 10.03% as the stock hit a 5-day low amid broader market gains, with the Nasdaq-100 up 1.87% and the S&P 500 up 1.06%.
This decline comes despite the company's announcement of a $275 million acquisition of WGNSTAR, which is expected to enhance its semiconductor operations. The acquisition is projected to be modestly dilutive to adjusted earnings per share in fiscal 2026 but accretive in fiscal 2027, indicating a strategic move to align with growing domestic semiconductor demand.
The market's positive performance contrasts with ABM's stock movement, suggesting sector rotation as investors react to the acquisition news while the broader market remains strong.
Analyst Views on ABM
Wall Street analysts forecast ABM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABM is 52.75 USD with a low forecast of 51.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 44.790
Low
51.00
Averages
52.75
High
54.00
Current: 44.790
Low
51.00
Averages
52.75
High
54.00
About ABM
ABM Industries Inc, which operates through its subsidiaries, is a provider of integrated facility, infrastructure, and mobility solutions. The Company’s segments include Business & Industry (B&I), Manufacturing & Distribution (M&D), Education, Aviation, and Technical Solutions. The B&I segment encompasses janitorial, facilities engineering, and parking services for commercial real estate properties, sports and entertainment venues, and other facilities. The M&D segment provides integrated facility services, engineering, janitorial, and other specialized services. The Education segment delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services. The Aviation segment supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. The Technical Solutions segment specializes in facility infrastructure, mechanical and electrical services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
