The Bull Case For Otis Worldwide (OTIS) Could Change Following European Launch of Arise Elevator Modernization Solutions

• In September 2025, Otis Worldwide announced the launch of its Arise™ MOD Prime and MOD Plus elevator modernization solutions in key European markets to tackle the challenge of aging elevator infrastructure with enhanced safety, energy efficiency, and digital connectivity.
• This initiative enables building owners to customize the scope and pace of upgrades, potentially broadening adoption and supporting increased demand for Otis’s modernization services in Europe.
• We'll examine how these modernization solutions, emphasizing flexibility for building owners, may influence Otis Worldwide's investment narrative going forward.

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Otis Worldwide Investment Narrative Recap

To be an Otis Worldwide shareholder, you need to believe in the company’s ability to turn Europe’s aging elevator infrastructure into a predictable stream of high-margin modernization and service revenue, while offsetting weak new equipment sales, especially in China and commercial real estate markets. The launch of the Arise™ MOD Prime and MOD Plus solutions in Europe supports the modernization growth story, but is not expected to materially shift the main short-term catalyst: ongoing momentum in modernization order conversion and recurring service revenue. Persistent headwinds in new installations and price pressure, especially from China, remain the core risk.

Of recent announcements, Wolfe Research’s recent upgrade to Outperform stands out in this context. It draws attention to the bullish side of Otis’s plan to bolster recurring revenue by expanding modernization offerings like Arise™, despite analyst caution and macro pressures lingering over new equipment demand.

But while modernization and service growth may fuel optimism, investors should also factor in continuing exposure to prolonged weakness in...

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

Otis Worldwide's outlook anticipates $16.4 billion in revenue and $1.9 billion in earnings by 2028. This is based on a projected 5.0% annual revenue growth rate and a $0.4 billion earnings increase from the current $1.5 billion.

Uncover how Otis Worldwide's forecasts yield a $100.23 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community estimate fair value between US$81.56 and US$109.62 per share. With modernization forming the main catalyst, this spread highlights how opinions on Otis’s earnings potential and risks can widely differ, explore several perspectives before forming your own view.

Explore 4 other fair value estimates on Otis Worldwide - why the stock might be worth as much as 23% more than the current price!

Build Your Own Otis Worldwide 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 Otis Worldwide research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Otis Worldwide research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Otis Worldwide'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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