Update shared on 17 Dec 2025
Fair value Decreased 0.50%Analysts have modestly lowered their price target on Allegion to approximately $182 from about $183, reflecting slightly higher discount rate assumptions that more than offset marginally improved revenue growth expectations and a stable profit margin outlook.
What's in the News
- Allegion raised its 2025 full year guidance, now expecting reported revenue growth of 7.0% to 8.0% and EPS of $7.45 to $7.55, or $8.10 to $8.20 on an adjusted basis (Corporate guidance)
- The company enhanced its LCN 2800IQ and 9500IQ Senior Swing operators with AdaptivIQ self adjusting technology and Smart Power Boost to improve durability, reduce maintenance and simplify installation in high traffic applications (Product announcement)
- Allegion brands Zentra and Gatewise will showcase expanded wallet based access control at OPTECH 2025, including tap and go smart lock and gate solutions that work via Apple and Google Wallet, even on low battery devices (Product announcement)
- Zentra introduced resident key capability in Google Wallet, enabling contactless access to buildings, amenities and units using Android phones and Wear OS smartwatches, aimed at enhancing resident experience and property NOI (Product announcement)
- Allegion Americas partnered with Brivo to deliver a Wi Fi based Connected Openings solution using Schlage XE360 wireless locks, reducing infrastructure needs and expanding real time electronic access control across property types (Client announcement)
Valuation Changes
- The fair value estimate has fallen slightly to approximately $182.18 from about $183.09 per share.
- The discount rate has risen marginally to about 9.36 percent from roughly 9.35 percent, modestly increasing the required return.
- The revenue growth forecast has edged up slightly to around 7.83 percent annually from about 7.83 percent previously.
- The net profit margin outlook has dipped fractionally to roughly 17.19 percent from about 17.19 percent, effectively unchanged.
- The future P/E multiple has declined slightly to approximately 23.62x from about 23.73x, modestly lowering the valuation multiple applied.
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