Update shared on19 Sep 2025
Fair value Increased 1.16%Analysts raised their price targets for Allegion to $174.64, citing increased confidence in commercial demand and stable market conditions as non-residential activity recovers.
Analyst Commentary
- Bullish analysts note reduced downside risk as the non-residential market in the Americas stabilizes and exits a recent soft patch.
- Improved health indicators across Allegion’s key industry verticals signal stronger market conditions than the previous year.
- Price targets were raised in response to better-than-expected performance and market normalization in core segments.
- Upgrades reflect increased confidence in demand trends for Allegion's commercial and institutional products.
- Forward-looking sentiment is underpinned by visible recovery in end-market fundamentals and improved macroeconomic outlook.
What's in the News
- Allegion introduced Schlage L Series Motorized Latch Retraction mortise locks, targeting markets such as healthcare, education, and high-security applications, with features like ultra-quiet operation, multiple control options, retrofit compatibility, and a patent-pending adaptive motor.
- Raised full-year 2025 guidance: reported revenue growth now expected between 6.5% to 7.5% (organic 3.5% to 4.5%); adjusted EPS raised to $8.00–$8.15.
- Continued focus on acquisitions, exemplified by July additions Gatewise (SaaS gate entry for multifamily communities) aligned with the Zentra access solution strategy.
- Repurchased 284,000 shares ($39.95 million) in Q2 2025, completing 9.3% buyback (8.3 million shares, $1.02 billion) since 2020 authorization.
- Removed from the Russell 1000 Dynamic Index.
Valuation Changes
Summary of Valuation Changes for Allegion
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $172.64 to $174.64.
- The Consensus Revenue Growth forecasts for Allegion has risen slightly from 7.1% per annum to 7.4% per annum.
- The Discount Rate for Allegion remained effectively unchanged, moving only marginally from 9.04% to 9.01%.
Disclaimer
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