- Recent industry analysis highlights that Allegion, along with select peers, is set to benefit from growing global demand for security and safety solutions, aided by rising awareness and expanding cybersecurity needs.
- Analysts have revised Allegion’s earnings estimates upward, reflecting confidence in the company’s ability to capitalize on sector trends and innovate with improved product offerings.
- We'll explore how heightened analyst sentiment, reflecting growth in both digital security and cybersecurity, could shape Allegion’s investment narrative going forward.
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Allegion Investment Narrative Recap
To be a shareholder in Allegion, you need to believe in the continuing global demand for integrated security and safety solutions, particularly as institutions and businesses invest in both physical and digital protection. The recent analyst optimism and earnings estimate revisions reflect momentum, but do not materially change Allegion’s biggest short-term catalyst, penetration of electronic and IoT-enabled products in nonresidential markets, nor does it reduce key risks tied to prolonged softness in the international segment.
Among recent developments, the July 29 launch of the Schlage L Series, featuring motorized latch retraction mortise locks tailored for sectors like healthcare and education, is timely. This product aligns directly with Allegion’s efforts to grow its portfolio of connected security solutions, an area central to near-term revenue growth given the spiking demand for advanced access control highlighted in the latest industry reports.
Yet, despite upbeat analyst sentiment, investors should not overlook the continued underperformance in Allegion’s international mechanical segment and what that could mean for...
Read the full narrative on Allegion (it's free!)
Allegion's outlook anticipates $4.8 billion in revenue and $825.7 million in earnings by 2028. This reflects a 7.1% annual revenue growth rate and a $199.5 million increase in earnings from the current $626.2 million.
Uncover how Allegion's forecasts yield a $170.64 fair value, a 3% upside to its current price.
Exploring Other Perspectives
Three Simply Wall St Community members see Allegion’s fair value anywhere from US$137.62 to US$170.64 per share. Against recent earnings momentum and product innovation, persistent regional market weakness could weigh on wider expectations, so it’s worth weighing several viewpoints.
Explore 3 other fair value estimates on Allegion - why the stock might be worth as much as $170.64!
Build Your Own Allegion Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Allegion research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
- Our free Allegion research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Allegion's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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