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Investing.com - Baird downgraded ABM Industries (NYSE:ABM) from Outperform to Neutral on Monday, while lowering its price target to $54.00 from $56.00. According to InvestingPro data, ABM maintains strong financial health with a current ratio of 1.49 and has sustained dividend payments for an impressive 55 consecutive years.
The research firm cited competitive pressures in several large markets where weak demand persists, including Los Angeles, Minneapolis, and Portland, forcing ABM to adjust prices to retain business.
Baird analyst Andrew Wittmann noted this development reverses the firm’s previous positive thesis, which had been based on good top-line momentum in ABM’s core annuity businesses and material improvements in free cash flow.
The downgrade comes despite ABM’s implementation of a new restructuring program, which Baird acknowledges will help in the near term but "doesn’t address fundamental demand" issues.
Baird had upgraded ABM Industries last quarter, citing post-COVID improvements in the company’s essential services business, but now believes the competitive pricing pressures could take time to rectify.
In other recent news, ABM Industries announced its third-quarter 2025 financial results, which highlighted a mixed performance. The company reported earnings per share (EPS) of $0.82, which did not meet the analysts’ expectations of $0.95, resulting in a negative surprise of 13.68%. On a positive note, ABM Industries’ revenue reached $2.2 billion, surpassing the anticipated $2.15 billion. These developments indicate a stronger than expected revenue performance despite the EPS shortfall. The earnings report did not include any updates on mergers or acquisitions. Analysts from various firms have yet to provide any recent upgrades or downgrades following the earnings announcement. Investors are closely watching these developments for future guidance.
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