ABM price target raised to $55 from $49 at Truist

Truist raised the firm’s price target on ABM to $55 from $49 but keeps a Hold rating on the shares after the company reported a “solid” Q3 and raised its FY24 guidance. The stock’s negative reaction to the results is likely “profit-taking” as shares hit an all-time high in the previous week and with valuation trending above the historical 8- to 9-times expected EBITDA, the analyst tells investors in a research note. ABM also indicated that normalizing labor expense growth, ability to hire, easing turnover, lower overtime billing and internal workforce optimization tools have contributed to margin outperformance year-to-date, Truist added.