Allegion plc, a global leader in security products with a market cap of $12.3 billion, is based in Dublin, Ireland. The company offers a wide range of mechanical and electronic security solutions for residential, institutional, and commercial markets worldwide through various distribution channels, including e-commerce and specialty outlets.
Over the past 52 weeks, Allegion’s stock has performed slightly better than the broader market. While ALLE has increased by 33.7%, the S&P 500 Index has rallied by 32.1%. However, in 2024, ALLE’s shares have only gone up by 10.8%, trailing behind the SPX’s 26.2% gain year-to-date.
Despite reporting strong Q3 adjusted earnings per share of $2.16 and revenue of $967.1 million, Allegion’s stock fell by 3.7% on October 24. This decline was due to concerns about slower growth in its residential business, impacted by high mortgage rates and rising home prices. Additionally, the international segment saw lower operating income and rising interest expenses, contributing to the negative market reaction.
Analysts are optimistic about Allegion’s future, with expectations of a 6.5% year-over-year growth in earnings per share to $7.41 for the current fiscal year ending in December. The company has a history of exceeding consensus estimates in the last four quarters.
Of the eight analysts covering the stock, the consensus rating is a “Hold,” with two “Strong Buy” ratings, four “Holds,” one “Moderate Sell,” and one “Strong Sell.” Barclays recently raised Allegion’s price target to $137 with an “Underweight” rating, highlighting improvements in its acquisition strategy and a rebound in electronic locks.
As of the latest update, Allegion’s stock is trading below the mean price target of $147. The highest price target of $165 suggests a potential upside of 17.5% from the current price levels. It’s important to note that the information provided in this article is solely for informational purposes.
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