ABM Industries Inc shares fell by 4.42% after hitting a 20-day low. This decline occurs despite the broader market's positive performance, with the Nasdaq-100 up 1.30% and the S&P 500 up 0.58%.
The drop in ABM's stock price is attributed to sector rotation, following the company's announcement of a $275 million acquisition of WGNSTAR, which is expected to be slightly dilutive to adjusted EPS in fiscal 2026 but accretive in fiscal 2027. The acquisition aims to enhance ABM's capabilities in semiconductor operations, aligning with the growing demand for domestic semiconductor production.
Investors may be cautious as the acquisition could impact short-term earnings, despite the long-term growth potential. The market's overall strength indicates a shift in investor focus, which may have contributed to the stock's decline amid positive market conditions.
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
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.
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
Truist
Buy
to
Hold
downgrade
$58 -> $47
2026-01-21
Reason
Truist
Price Target
$58 -> $47
AI Analysis
2026-01-21
downgrade
Buy
to
Hold
Reason
Truist downgraded 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.
Baird
Andrew Wittmann
Outperform
downgrade
$54 -> $52
2025-12-18
Reason
Baird
Andrew Wittmann
Price Target
$54 -> $52
2025-12-18
downgrade
Outperform
Reason
Baird analyst Andrew Wittmann lowered the firm's price target on ABM to $52 from $54 and keeps an Outperform rating on the shares. The firm updated its model following decent Q4 results which suggested the easing of pricing headwinds.
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UBS
Buy -> Neutral
downgrade
$55 -> $51
2025-12-18
Reason
UBS
Price Target
$55 -> $51
2025-12-18
downgrade
Buy -> Neutral
Reason
UBS downgraded 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.
Freedom Capital
David Silver
Buy
initiated
$54
2025-12-09
Reason
Freedom Capital
David Silver
Price Target
$54
2025-12-09
initiated
Buy
Reason
Freedom Capital analyst David Silver initiated coverage of ABM with a Buy rating and $54 price target. The company is "tariff-resistant" and provides a range of facility-related services for the industrial, commercial, educational and aviation industries, the analyst tells investors in a research note. The firm says ABM is adding profitable new business servicing higher-end properties. With the commercial real estate bottoming, the company is positioned record revenue and adjusted earnings in 2026, contends Freedom Capital.
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.
