Deutsche Bank downgraded shares of ABM Industries (NYSE:ABM) to Hold from Buy, lowering the price target to $43 from $65 per share in a note to clients Friday.
Analysts from Deutsche Bank said the company has downgraded the stock following its recent results due to the limited visibility.
"ABM's results and guide (FY24 EPS to be down slightly) were disappointing," stated the analysts, noting the company's management indicated it expected to see a continued negative impact from a soft commercial real estate market in FY24, continued project delays in Technical Solutions, and a potential of lost business in the manufacturing & distribution segment from a large customer.
As a result, Deutsche Bank said it has limited visibility on all of the factors and no longer feels comfortable recommending the stock.
"In our view, softness in the commercial real estate market may well linger beyond FY24 due to timing of lease expirations," the analysts added. "It's also unclear to us when project delays in Technical Solutions will resolve as higher interest rates/financing costs are a clear factor."