A Look at Allegion’s Valuation Following Zentra’s Google Wallet Access Upgrade for Apartments

Allegion (ALLE) just revealed a new upgrade to apartment living, as its Zentra brand became the first to enable resident keys in Google Wallet. Residents can now tap their Android phone or smartwatch to unlock doors, eliminating the need for traditional keys.

See our latest analysis for Allegion.

Following this digital upgrade to its resident access solutions, Allegion has continued showing solid momentum. Its share price has climbed over 38% so far this year, with a three-year total shareholder return of nearly 107%. While recent innovations like the Zentra Google Wallet integration attract attention, the company’s long-term performance highlights resilience and operational consistency.

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Yet with the stock hovering just below analyst price targets after a sharp rally, investors have to wonder if Allegion’s growth is already reflected in its share price or if there is still upside left to capture.

Most Popular Narrative: Fairly Valued

With Allegion’s last close at $177.50 and the consensus fair value at $177.55, there is almost no gap between price and narrative valuation. This alignment draws attention to what is driving analyst confidence.

Robust expansion in smart and connected security solutions, particularly through strong electronics growth (double-digit in Q2) and new launches like SimonsVoss's batteryless FORTLOX electronic cylinder, positions Allegion to benefit from increased adoption of IoT and digital building management, supporting higher future revenues and improved margin mix.

Read the complete narrative.

Want to see what is fueling such analyst conviction? The real story is built on ambitious projections for recurring revenue, tech-powered margin expansion, and an expected uptick in long-term earnings growth. Intrigued by the numbers behind this razor-thin price target? You will need to dive deeper to find out exactly what is driving the narrative forward.

Result: Fair Value of $177.55 (ABOUT RIGHT)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent softness in international sales or any sudden slowdown in nonresidential construction could quickly put Allegion’s growth outlook back under pressure.

Find out about the key risks to this Allegion narrative.

Another View: Is the Market Paying Too Much?

While analysts see Allegion as fairly valued, a look at its price-to-earnings ratio tells a different story. At 24.3x, Allegion’s ratio is noticeably higher than industry peers (17.9x) and the fair ratio (22.1x). This suggests investors are paying a premium. Does this premium indicate true confidence, or does it signal valuation risk ahead?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Allegion Narrative

If you have your own take on Allegion’s future and want to crunch the numbers yourself, it only takes a few minutes to build your own outlook. Do it your way

A great starting point for your Allegion research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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