Deutsche Bank provided its outlook on ABM Industries Incorporated (NYSE:ABM) ahead of the upcoming Q4 results, expected to be announced on Dec 13.

Key focus areas are likely to be around top-line business momentum across segments, labor dynamics including supply constraints and wage inflation, and expected free cash flow conversion.

The company had already noted that due to wage pressures and a tight labor market, margin expansion in fiscal 2023 will be limited, indicating that margin expectations are sufficiently low. The analysts continue to view the company as an undervalued stock in light of significant opportunities to gain market share and improve free cash flow.