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Analysts have increased their price target for Allegion from $177.55 to $179.36. They cite improved industry conditions and reduced downside risk as key factors supporting the higher valuation.

Analyst Commentary

Recent commentary from analysts reflects a balanced view of Allegion's outlook, highlighting both reasons for optimism and areas of caution as the company navigates changing industry dynamics and valuations.

• Bullish analysts note that Allegion's primary Americas non-residential market has shown meaningful recovery from previous softness. This strengthens confidence in future growth.
• Healthier indicators across key industry verticals suggest a more stable operating environment. This supports higher valuations and potential revenue expansion.
• Reduced downside risk is emphasized, as analysts see limited room for further deterioration in the current business climate.
• The incremental increase in price targets is tied to improved execution and greater clarity on industry trends. These factors are expected to drive near-term performance.

• Bearish analysts remain cautious about lingering macroeconomic risks that may impact longer-term demand growth in Allegion's core markets.
• Although indicators have improved, some persistent uncertainties remain regarding the sustainability of recent gains across verticals.
• There is ongoing scrutiny of valuation multiples as shares approach revised price targets. Analysts express concerns that upside could be limited by recent market moves.

What's in the News

• Zentra is now the first to offer resident key capability in Google Wallet. This allows residents to unlock their apartment and community spaces with an Android device or Wear OS smartwatch, enhancing luxury and security for multifamily properties (Product-Related Announcements).
• Allegion US introduced the Schlage Performance Series locks. These include new mortise, cylindrical, and tubular options designed for commercial real estate and multifamily projects that prioritize both quality and cost efficiency (Product-Related Announcements).
• The company unveiled the Schlage L Series Motorized Latch Retraction mortise locks, which provide quiet, secure, and retrofittable controlled access solutions suitable for healthcare, education, and high-security applications (Product-Related Announcements).
• Allegion raised its 2025 full-year revenue and earnings per share outlook. The company expects reported revenue growth of 6.5% to 7.5% and adjusted EPS in the range of $8.00 to $8.15 (Corporate Guidance, Raised).
• Recent acquisitions, including Gatewise, reflect Allegion's ongoing strategy to expand its offerings in electronic security and software solutions, especially for multifamily communities (Seeking Acquisitions/Investments).

Valuation Changes

• Consensus Analyst Price Target has risen slightly, increasing from $177.55 to $179.36.
• Discount Rate has decreased marginally, moving from 9.04% to 9.03%.
• Revenue Growth Expectations remain essentially unchanged, with a minimal uptick from 7.39% to 7.39%.
• Net Profit Margin is stable, showing a negligible decline from 17.36% to 17.36%.
• Future P/E Ratio has increased slightly, rising from 22.64x to 22.87x.