Analyst Andrew Obin of Bank of America Securities maintained a Hold rating on Allegion, with a price target of $185.00.
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Andrew Obin has given his Hold rating due to a combination of factors influencing Allegion’s market position. The institutional market continues to be a strong driver of growth, but the residential sector remains weak, with expectations of continued softness until at least 2026. This aligns with Allegion’s recent earnings commentary, indicating a cautious outlook for residential demand.
Additionally, while there is a growing adoption of electronic locks and mobile credentials, which Allegion is well-positioned to capitalize on, the overall market dynamics suggest a balanced risk-reward scenario. The company’s valuation, with a current price below the price objective, reflects these mixed signals, leading to a Hold rating as the market waits for clearer signs of recovery or further innovation in Allegion’s offerings.
Obin covers the Industrials sector, focusing on stocks such as Honeywell International, Eaton, and Vertiv Holdings. According to TipRanks, Obin has an average return of 15.6% and a 66.17% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $187.00 price target.