Update shared on11 Sep 2025
Fair value Decreased 1.68%Analysts trimmed their price target for Otis Worldwide to $99.23, citing stable but unexceptional growth and limited scope for further multiple expansion, with the shares now seen as fairly valued.
Analyst Commentary
- Recent upgrades reflect increased confidence in the company's ability to outperform peers, prompting bullish analysts to raise their rating.
- Analysts point to the company's organic revenue and earnings growth profile as stable but "average," limiting prospects for a material multiple re-rating.
- Bullish analysts highlight modest upside to consensus forecasts, supporting a higher price target despite limited near-term catalysts.
- The current share price is seen as fairly valued, with some analysts believing further upside is constrained unless growth meaningfully accelerates.
- Valuation concerns persist among neutral or bearish analysts, given that forecasted improvements are not substantial enough to justify significant target price increases.
What's in the News
- Otis secured a contract to install 265 Gen2 Prime elevators for Mountain View Real Estate’s residential projects in Egypt, enhancing aesthetics and functionality across multiple key developments.
- The company was selected by Singapore’s Land Transport Authority to supply 336 escalators and walkways plus 186 Gen3 elevators for the new Cross Island MRT Line, bringing advanced IoT-connected solutions to a high-profile infrastructure project.
- Otis will provide 76 advanced elevators for Sobha Realty’s Riverside Crescent in Dubai, supporting luxury residential towers with high-speed systems and real-time monitoring technologies.
- A major deal with Tatweer Misr involves supplying 1,250 smart elevators over six years for six large Egyptian urban developments, emphasizing sustainability and innovation.
- Otis repurchased 3.14 million shares (0.79% of shares outstanding) for $300 million, completing a buyback tranche totaling 4.7 million shares (1.19%) for $452.86 million; the company raised 2025 guidance with net sales expected at $14.5–$14.6 billion, organic services up 5%, but new equipment sales down 7%.
Valuation Changes
Summary of Valuation Changes for Otis Worldwide
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $100.92 to $99.23.
- The Future P/E for Otis Worldwide remained effectively unchanged, moving only marginally from 24.62x to 24.21x.
- The Consensus Revenue Growth forecasts for Otis Worldwide remained effectively unchanged, at 5.0% per annum.
Disclaimer
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