Reasons Behind ABM Industries' Nearly 10% Stock Decline Today
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Source: Yahoo Finance
Analyst Downgrades Impact ABM Industries: ABM Industries experienced a nearly 10% decline in stock value following downgrades from analysts at Baird and UBS, who adjusted their price targets and recommendations after the company's mixed fourth-quarter results.
Mixed Financial Performance: Despite reporting a record revenue of $2.3 billion for fiscal 2025, ABM's net income fell short of expectations, leading to concerns among investors regarding its profitability and future growth.
Future Guidance: ABM management provided guidance for the upcoming fiscal year, projecting revenue growth of 3% to 4% and an increase in adjusted net income, which may indicate potential recovery despite recent setbacks.
Investment Perspective: The article suggests that the recent dip in ABM's stock price could be viewed as a buying opportunity, especially given its status as a Dividend King with a consistent dividend yield of 2.4%.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
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.
Analysts Downgrade Tetra and Willscot Ratings, Price Targets Raised to $11 and $23
- Tetra Downgrade: Clear Street analyst Tim Moore downgraded Tetra Technologies Inc (NYSE:TTI) from Buy to Hold while raising the price target from $10 to $11, indicating a cautious market outlook despite shares closing at $11.24 on Tuesday.
- Willscot Rating Change: Baird analyst Andrew Wittmann downgraded Willscot Holdings Corp (NASDAQ:WSC) from Outperform to Neutral, increasing the price target from $22 to $23, reflecting a reassessment of growth potential with shares closing at $21.70 on Tuesday.
- Darden Rating Adjustment: Raymond James analyst Brian Vaccaro downgraded Darden Restaurants Inc (NYSE:DRI) from Outperform to Market Perform, signaling concerns about future performance with shares closing at $208.88 on Tuesday.
- ABM Downgrade: Truist Securities analyst Jasper Bibb downgraded ABM Industries Inc (NYSE:ABM) from Buy to Hold and slashed the price target to $47, down from $58, with shares closing at $45.44 on Tuesday, indicating worries about profitability.
Continue Reading
Goodman Financial Exits ABM Industries with $13.07 Million Transaction
- Position Change: Goodman Financial fully exited its position in ABM Industries by selling 283,456 shares for approximately $13.07 million, indicating a reassessment of the company's future performance potential.
- Market Performance: ABM Industries shares are priced at $44.12, down 13% over the past year, significantly underperforming the S&P 500's approximately 17% gain during the same period, reflecting a lack of market confidence in its defensive services.
- Financial Health: Despite market challenges, ABM achieved a record revenue of $8.7 billion in fiscal 2025, up 4.6% year-over-year, with adjusted EBITDA reaching $496.6 million, demonstrating strong fundamentals.
- Capital Allocation: Goodman Financial's portfolio is shifting towards broad equity ETFs and short-duration bond funds, suggesting a strategic move to allocate capital to potentially more productive investment opportunities rather than maintaining its stake in ABM.
Continue Reading