ABM Industries Incorporated (NYSE:ABM) was downgraded by Truist Securities on January 21 to Hold from Buy, with a target price of $47. This was due to normalizing trends in the Business & Industry segment, representing 47% of revenue, and uncertainty around stock buybacks after the WGNSTAR acquisition.

UBS also downgraded ABM Industries from Buy to Hold last month, citing limited flexibility for capital deployment and a “flattish” margin trajectory. The company’s FY2026 guidance and the WGNSTAR acquisition were seen as limiting margin expansion and capital deployment potential.

ABM Industries provides facility maintenance, engineering, and infrastructure solutions in Aviation, Manufacturing & Distribution, Business & Industry, Education, and Technical Solutions segments. Despite potential as an investment, some AI stocks may offer greater upside potential and less downside risk.

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Read more at Yahoo Finance: ABM Industries (ABM) Still Has An Attractive Upside Despite Truist Downgrade