ABM downgraded to Neutral from Outperform at Baird

Baird downgraded ABM Industries to Neutral from Outperform with a price target of $51, down from $52, following the fiscal Q1 results. The company’s’ core demand is softening as COVID-related disinfection revenues are now effectively zero, and customer descoping and fewer work orders are pressuring revenue where volumes are flat-to-negative, the analyst tells investors in a research note. The firm says its thesis of easing labor cost pressure isn’t materializing. It no longer shares catalysts for ABM share outperformance.