How Brivo Partnership and Wi-Fi Locks Could Influence Allegion's (ALLE) Role in Smart Security

• Brivo recently announced a partnership with Allegion Americas to deliver an industry-first Connected Openings solution, integrating Brivo’s Security Suite with the Schlage XE360 wireless lock using real-time Wi-Fi and Allegion’s IoT framework for advanced access control.
• This collaboration eliminates the need for added infrastructure like panels and wiring, enhancing scalability and potentially lowering installation costs for commercial and multi-family buildings.
• We'll review how Allegion's new connected Wi-Fi solution with Brivo could impact its position in smart security and digital access.

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Allegion Investment Narrative Recap

To be a shareholder in Allegion, you need to believe in its ability to transition from traditional hardware to advanced electronic and cloud-based security solutions, reinforcing its competitive edge in smart access control. The recent partnership with Brivo strengthens Allegion’s digital portfolio and builds on its nonresidential growth catalyst, but it does not materially shift the biggest near-term risk: a potential slowdown in nonresidential construction, which could still pressure top-line results despite innovation momentum.

Among recent announcements, Allegion’s updated 2025 guidance, raising revenue growth expectations to 7.0% to 8.0% and adjusted EPS to US$8.10 to US$8.20, aligns with its focus on smart and connected solutions. The Brivo alliance could reinforce that momentum if adoption accelerates in commercial segments, supporting the ongoing shift toward higher-margin electronic products.

However, investors should not overlook that, even as Allegion invests in technology and connected security, it remains heavily reliant on nonresidential cycles, which means...

Read the full narrative on Allegion (it's free!)

Allegion's narrative projects $4.8 billion revenue and $825.7 million earnings by 2028. This requires 7.1% yearly revenue growth and a $199.5 million earnings increase from $626.2 million.

Uncover how Allegion's forecasts yield a $183.09 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members generated three different fair value estimates for Allegion, ranging from US$137.33 to US$183.09 per share. While these opinions vary, the company’s future hinges on the speed it can expand its electronic and software security offerings, encouraging you to review a spectrum of independent outlooks.

Explore 3 other fair value estimates on Allegion - why the stock might be worth as much as 11% more than the current price!

Build Your Own Allegion Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Allegion research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Allegion's overall financial health at a glance.

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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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