Update shared on 04 Dec 2025
Analysts have modestly raised their price target on Otis Worldwide, citing slightly higher discount rate and future P/E assumptions. These factors support a revised fair value of approximately $103.25 per share, up fractionally from prior estimates.
What's in the News
- Expanded Gen3 Core elevator platform in North America, now offering higher load capacities up to 5,000 pounds, larger door openings, and bigger cabs to better serve low rise buildings and heavier freight needs (Key Developments)
- Integrated Otis ONE IoT platform, eView in car display, and Otis Integrated Dispatch API into Gen3 Core elevators, enabling real time monitoring, enhanced emergency communications, and compatibility with autonomous service robots (Key Developments)
- Launched Arise MOD Prime and Arise MOD Plus modernization solutions in key European markets to upgrade aging elevator fleets, improve safety to EN 81 20 standards, and cut energy consumption by up to 75 percent versus legacy systems (Key Developments)
- Secured major contract in India with My Home Group to supply 169 high speed elevator systems for multiple luxury residential developments in Hyderabad, strengthening Otis presence in a fast growing market (Key Developments)
- Won order to provide and install 265 Gen2 Prime elevator systems for Mountain View Real Estate Development residential projects in Egypt, supporting regional growth and new build activity (Key Developments)
Valuation Changes
- Fair Value: Unchanged at approximately $103.25 per share, indicating no material revision to the intrinsic value estimate.
- Discount Rate: Increased slightly from about 8.90 percent to approximately 8.95 percent, reflecting a modestly higher required return.
- Revenue Growth: Effectively unchanged, remaining around 5.58 percent, implying no notable shift in top line growth assumptions.
- Net Profit Margin: Stable at roughly 11.94 percent, with only a minimal rounding level adjustment to long term profitability expectations.
- Future P/E: Increased slightly from about 24.46x to approximately 24.50x, signaling a marginal rise in the valuation multiple applied to future earnings.
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