
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 starting in FY26/FY27 as transformation costs from its ELEVATE initiative are projected to decrease. The company's valuation is anticipated to appreciate towards its long-term average as operational disruptions normalize and the Business and Industry segment returns to organic growth following recent challenges. Additionally, the stabilization of US office vacancy rates is poised to provide organic growth tailwinds, further supporting a positive outlook for the company's financial performance.
Bears say
ABM Industries Inc. is experiencing significant challenges, as evidenced by a dramatic decline in EBITDA conversion, which dropped to -6% from 54% due to an extended disruption from an ERP rollout. This disruption has led to negative free cash flow conversion and has exerted downward pressure on the company's stock performance. Additionally, the outlook for organic growth and return on invested capital (ROIC) remains bleak, suggesting continued financial strains in the foreseeable future.
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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