ABM Industries (ABM) PT Raised to $48 at CL King as Accounting Change Causes 1 Time EPS Miss

December 21, 2020 6:44 AM EST
Get Alerts ABM Hot Sheet
Price: $46.49 -1.13%

Rating Summary:
    5 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
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CL King analyst David Silver raised the price target on ABM Industries (NYSE: ABM) to $48.00 (from $45.00) after results for 4Q20 showed adjusted EPS of $0.69 fell just short of the $0.70 consensus, as accounting rules dictated it take a project reserve (not yet a write-off or bad debt) totaling $0.21 per share. Adjusted for the reserve, Q4 underlying earnings set a third consecutive quarterly record.

The analyst reiterated a Buy rating, stating "While most recognize that ABM’s cleaning services are a direct beneficiary of pandemic-related concerns, few seemingly believe the strength can be sustained longer term, in particular as prospects for wide distribution of an effective vaccine against COVID-19 loom. We like holding the minority view, as data steadily accumulate that enhanced protocols for facilities maintenance, sanitation and disinfection will achieve steady secular growth as industries, institutions and nations pay greater attention to long-term strategies against infection in a post-pandemic world".

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