ABM Industries (ABM) Still Has An Attractive Upside Despite Truist Downgrade

ABM Industries Incorporated (NYSE:ABM) is one of the 10 most undervalued industrial stocks to buy according to analysts. On January 21, Truist Securities downgraded ABM Industries (NYSE:ABM) stock to Hold from Buy, lowering its target price from $58 to $47. The main reason for the downgrade was a normalizing of trends in the Business & Industry segment, which represents 47% of the company’s revenue. Moreover, stock buybacks, which were expected to be the biggest value creation factor this year, are also unlikely following the WGNSTAR acquisition.

A similar sentiment was observed last month, when UBS lowered its price target for the stock from $55 to $51 on December 18. Joshua Chan, an analyst at UBS, also downgraded the company from Buy to a Hold rating. According to the firm, the stock’s short-term performance may be constrained by the company’s limited flexibility for incremental capital deployment and relatively “flattish” margin trajectory. The firm further highlighted that ABM’s FY2026 guidance, along with its announcement of the WGNSTAR acquisition, limits both margin expansion and capital deployment potential. On the same day, Robert W. Blair reiterated its Hold rating on the stock while cutting the firm’s price target from $54 to $52.

ABM Industries Incorporated (NYSE:ABM) provides facility maintenance, engineering, and infrastructure solutions across the United States and globally. It operates in the Aviation, Manufacturing & Distribution, Business & Industry, Education, and Technical Solutions segments.

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Disclosure: None. This article is originally published at Insider Monkey.