UPDATE: KeyBanc Upgrades ABM Industries to Buy on Dissipating Headwinds

KeyBanc raised its rating on ABM Industries

from Hold to Buy and established a $25 price target. KeyBanc commented, "Following ABM's fiscal 4Q12 results that were largely in line with reduced expectations, we are upgrading shares to BUY from HOLD and introducing a $25 price target. In our view, not only should a number of headwinds disappear or abate in 2013 (declines in government-based revenues are expected to anniversary in fiscal 1Q13 while one fewer work day in fiscal 2Q13 should translate to about $4 million in lower cost), but we also believe ABM's core businesses are exhibiting signs of nascent improvement." ABM Industries closed at $20.15 on Tuesday.