The Bull Case For Allegion (ALLE) Could Change Following Digital Wallet Integration in Smart Access Solutions – Learn Why

• Allegion recently showcased expanded wallet-based access control solutions for multifamily properties through its Zentra and Gatewise brands at OPTECH 2025, highlighting integrations with both Apple and Google Wallet and reliable access features even on low battery devices.
• This development underscores Allegion’s push into the growing smart access sector, spotlighting a resident-first approach and advanced digital key management for apartments and gated communities.
• We'll assess how Allegion's expanded digital wallet integration for access control could influence its ongoing transition toward smart security solutions.

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Allegion Investment Narrative Recap

To believe in Allegion as a shareholder is to buy into its shift toward smart, connected security solutions and sustained growth in institutional and nonresidential markets. The latest launch of wallet-based access control through Zentra and Gatewise directly supports the company's smart access catalyst, yet does not immediately offset the risk from possible weakness in residential and international segments, which remain exposed to broader economic cycles and competitive pressures.

The most relevant recent announcement is Allegion's October partnership with Brivo, which leverages similar digital access innovations and expands the reach of Schlage XE360. This ongoing expansion into integrated, mobile-first solutions aligns closely with Allegion's growth catalyst in electronic access, furthering adoption while margins are supported through software-driven offerings. But while digital innovation accelerates, risk remains where legacy mechanical portfolios underperform, and international markets lag expectations.

Conversely, investors should also consider the potential for ongoing underperformance in international segments, particularly as...

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

Allegion's outlook anticipates $4.8 billion in revenue and $825.7 million in earnings by 2028. This projection is based on a 7.1% annual revenue growth rate and represents a $199.5 million increase in earnings from the current $626.2 million.

Uncover how Allegion's forecasts yield a $183.09 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have posted fair value estimates for Allegion ranging from US$137.14 to US$183.09, reflecting three different outlooks. While electronic access growth supports optimism, concerns around inconsistent international performance remain important for your decision making.

Explore 3 other fair value estimates on Allegion - why the stock might be worth 15% less 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 1 important warning sign 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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