Baird raises ABM price target to $49, sees positive earnings reaction ‘overdone’

Baird analyst Andrew Wittmann raised the firm’s price target on ABM to $49 from $40 and keeps a Neutral rating on the shares following a fiscal Q4. While the results “showed some real positives following a particularly tough print last quarter,” the firm attributes today’s strong positive move “more to highly depressed sentiment/expectations lingering from last quarter, rather than powerful new positive news this quarter,” says the analyst, who thinks the rally “seems overdone.” Initial FY24 guidance bracketed consensus, notes the analyst, who “actually tweaked lower our EBITDA estimate on higher corporate costs.”