Maxim Upgrades ABM to Buy, Highlights Data Center and Chip Exposure

ABM Industries Incorporated (NYSE:ABM) is included among the 14 High Growth Dividend Paying Stocks to Invest in Now.

Maxim Upgrades ABM to Buy, Highlights Data Center and Chip Exposure

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On March 11, Maxim upgraded ABM Industries Incorporated (NYSE:ABM) to Buy from Hold. It also set a $50 price target on the stock. The firm pointed to the company’s exposure to an expanding US supply chain, including chip factories, data centers, distribution centers, industrial equipment, and microgrids. The analyst noted that after completing a lower-margin transportation infrastructure project in the U.K. and adding semiconductor-related work in Ireland, ABM is now expected to generate more than 90% of its revenue from US projects.

During the fiscal Q1 2026 earnings call, CEO Scott Salmirs said the company started the year on a solid footing. He reported 5.5% organic revenue growth, nearly $50 million in free cash flow, and over $90 million in share repurchases for the quarter. He acknowledged that margins in the Technical Solutions segment came in below expectations, mainly due to project timing and mix. Even so, he said demand and backlog trends remained healthy, and the broader fundamentals across the business continued to look constructive. Based on that, the company left its full-year outlook unchanged.

Salmirs also highlighted the completion of the WGNSTAR acquisition at the beginning of Q2. He said the deal strengthens ABM’s position in semiconductor fabrication environments and improves its ability to support key growth areas in the US.

ABM Industries Incorporated (NYSE:ABM) provides integrated facility, engineering, and infrastructure solutions. Its operations are organized across Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions.

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