
ABM Industries (ABM) Stock Forecast & Price Target
ABM Industries (ABM) Analyst Ratings
Bulls say
ABM Industries Inc. is expected to see an improvement in free cash flow (FCF) conversion beginning in FY26/FY27, as the costs associated with the ELEVATE transformation and an earnout linked to the RavenVolt acquisition decline. Additionally, there is optimism that the company's valuation will align with long-term averages as FCF normalizes and the Business and Industry segment returns to organic growth. Furthermore, stabilizing vacancy rates in U.S. office spaces are anticipated to create favorable conditions for the company's operational recovery and growth.
Bears say
ABM Industries Inc has experienced a significant decline in EBITDA conversion, dropping to -6% from 54% in the previous quarter, largely attributed to a disruptive ERP rollout that has also negatively impacted free cash flow (FCF) conversion. This ERP disruption has led to extended Days Sales Outstanding (DSOs) for three consecutive quarters, which can strain liquidity and operational efficiency. Furthermore, forecasts indicate that organic growth and Return on Invested Capital (ROIC) are expected to remain low in the foreseeable future, suggesting 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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