
ABM Industries (ABM) Stock Forecast & Price Target
ABM Industries (ABM) Analyst Ratings
Bulls say
ABM Industries Inc. is positioned for a positive outlook due to anticipated improvements in free cash flow (FCF) conversion expected to begin in FY26/FY27, as transformation costs related to the ELEVATE initiative decrease. The company's valuation is projected to appreciate towards the long-term average, supported by the normalization of FCF following disruptions and a return to organic growth in the Business and Industry segment. Additionally, stabilizing U.S. office vacancy rates are expected to provide organic growth tailwinds, further contributing to the company’s recovery and potential valuation enhancement.
Bears say
ABM Industries Inc has experienced a significant decline in EBITDA conversion, plummeting from 54% to -6%, primarily due to disruptions stemming from an ERP rollout, which has adversely affected business operations. Additionally, the company has reported negative free cash flow conversion, which further exacerbates financial pressures on the stock. Expectations for organic growth and return on invested capital (ROIC) are projected to remain low in the near term, indicating 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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