Sidoti Maintains Buy Rating on ABM Industries with $68 Price Target

Sidoti analyst Marc Riddick maintains a Buy rating on ABM Industries with a price target of $68.00. The company's shares closed at $48.14. Riddick has a 4-star rating with an 8.3% average return and a 56.63% success rate. The analyst consensus is a Moderate Buy with an average price target of $57.60. ABM reported a quarterly revenue of $2.11 billion and a net profit of $42.2 million, with a negative corporate insider sentiment.

ABM Industries (ABM) has been capturing investors' attention with a surge in options market activity and positive analyst sentiment. The company's shares closed at $48.14 on July 2, 2025, with analyst Sidoti's Marc Riddick maintaining a Buy rating and setting a price target of $68.00 [1]. The analyst consensus is a Moderate Buy, with an average price target of $57.60, indicating a generally positive outlook for the company [2].

ABM Industries reported a quarterly revenue of $2.11 billion and a net profit of $42.2 million, demonstrating strong financial performance. Despite these positive figures, the company faces near-term risks such as cash flow volatility tied to its ERP transition. However, the latest options market activity and positive analyst sentiment suggest that investors anticipate a significant move or event affecting ABM's prospects.

One notable development is the full deployment of ABM Connect™ and smart facility solutions at Miami International Airport, with a five-year, $125 million partnership recently launched. This contract exemplifies ABM's push into technology-enabled services, which could drive growth and operational efficiencies.

However, the company must navigate challenges such as cost pressures, thin profit margins, and regulatory compliance. ABM's ability to manage these challenges and capitalize on growth opportunities will be crucial for its future performance.

References:
[1] https://finance.yahoo.com/news/janitorial-market-growth-trends-report-080500779.html
[2] https://simplywall.st/stocks/us/commercial-services/nyse-abm/abm-industries/news/how-investors-are-reacting-to-abm-industries-abm-surging-opt