Update shared on04 Oct 2025
Fair value Increased 1.67%Analysts have raised their price target for Allegion by $2.91 to $177.55, citing improved industry trends and reduced downside risk. This adjustment is supported by healthier market indicators.
Analyst Commentary
Analyst updates reflect a measured improvement in sentiment toward Allegion, with revised ratings and adjusted price targets reflecting shifting industry conditions and company performance.
Bullish Takeaways- Bullish analysts highlight reduced downside risk for Allegion, citing a healthier industry backdrop and the company’s ability to navigate previous market softness.
- Encouraging indicators in Allegion’s main industry verticals suggest stronger underlying demand compared to the previous year. This could support continued growth and margin recovery.
- Improvement in the Americas non-residential segment is seen as a positive. Most of that market is emerging from a recent soft patch, enhancing Allegion’s operational outlook.
- Raised price targets suggest increased confidence in Allegion’s near-term execution and an improved risk-reward profile for investors.
- Some caution remains as analysts adopt a neutral stance, maintaining Equal Weight ratings and signaling a balanced view on potential upside versus risks.
- Despite the improved outlook, lingering concerns about the pace of sustained growth and Allegion’s ability to fully capitalize on recovering industry demand persist.
- Execution risks and external market headwinds are still factored into current analyst valuations. This tempers expectations for a rapid acceleration in performance.
What's in the News
- Allegion US launched the Schlage Performance Series Locks, designed for commercial real estate and multifamily projects. The new locks offer streamlined installation and new decorative options. (Product-Related Announcements)
- The company introduced Motorized Latch Retraction mortise locks within the Schlage L Series, expanding hands-free access and security options across multiple sectors. (Product-Related Announcements)
- Between April and June 2025, Allegion completed a share repurchase of 284,000 shares for $39.95 million. This marked the end of a $1.02 billion buyback program. (Buyback Tranche Update)
- Allegion continues to pursue strategic acquisitions and recently added Gatewise, a Software-as-a-Service gate entry system for multifamily communities, to enhance its security and access portfolio. (Seeking Acquisitions/Investments)
- The company raised its 2025 guidance and now expects 6.5% to 7.5% revenue growth along with an increased earnings per share outlook. (Corporate Guidance Raised)
Valuation Changes
- Consensus Analyst Price Target has increased slightly from $174.64 to $177.55, reflecting improved outlooks.
- Discount Rate has risen marginally from 9.01% to 9.04%, indicating a minor adjustment in perceived risk.
- Revenue Growth projections remain virtually unchanged and are holding steady at approximately 7.39%.
- Net Profit Margin estimates are stable and remain at around 17.36%.
- Future P/E ratio has risen modestly from 22.25x to 22.64x, suggesting a slightly higher valuation multiple.
Disclaimer
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