
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 fiscal years 2026 and 2027 as the costs associated with the ELEVATE transformation begin to decline and the company completes an earnout related to the RavenVolt acquisition. Additionally, the company's valuation is anticipated to appreciate towards its long-term average as disruptions related to FCF normalize and organic growth returns in the Business and Industry segment, especially with stabilizing U.S. office vacancy rates. The positive outlook is further supported by the expectation that the underperformance experienced in previous periods can reverse, driven by these factors.
Bears say
ABM Industries Inc. is facing significant financial challenges, as indicated by a drop in EBITDA conversion from 54% to -6%, attributed to ongoing disruptions related to the implementation of an ERP system. This disruption has also adversely impacted free cash flow (FCF), leading to negative cash generation and exerting downward pressure on the stock. Furthermore, the company's prospects for organic growth and return on invested capital (ROIC) appear bleak, with expectations of continued low performance in these areas for 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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