
ABM Industries (ABM) Stock Forecast & Price Target
ABM Industries (ABM) Analyst Ratings
Bulls say
ABM Industries Inc. is expected to see improved free cash flow (FCF) conversion starting in fiscal years 2026 and 2027 as transformation costs related to the ELEVATE initiative decline. The company's valuation is projected to align with long-term averages as disruptions from its Enterprise Resource Planning (ERP) system normalize, coupled with anticipated organic growth in the Business and Industry segment, which has been affected by market dynamics. Furthermore, stabilizing US office vacancy rates could provide additional momentum for a reversal of previous underperformance, bolstering an optimistic outlook for the company’s financial health and stock performance.
Bears say
ABM Industries Inc. has experienced a significant decline in EBITDA conversion, dropping to -6% from 54% in the previous quarter, largely due to extended days sales outstanding (DSOs) amidst a challenging ERP rollout over three consecutive quarters. This disruption has not only negatively impacted EBITDA but also forced free cash flow (FCF) conversion into negative territory, contributing further to downward pressure on the stock. Additionally, forecasts suggest that both organic growth and return on invested capital (ROIC) are expected to remain low for the foreseeable future, indicating potential ongoing challenges for the company's financial performance.
This aggregate rating is based on analysts' research of ABM Industries and is not a guaranteed prediction by Public.com or investment advice.
ABM Industries (ABM) Analyst Forecast & Price Prediction
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