Analyst Andrew Obin of Bank of America Securities maintained a Sell rating on Allegion (ALLE – Research Report), retaining the price target of $110.00.
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Andrew Obin has given his Sell rating due to a combination of factors impacting Allegion’s market outlook and financial performance. Despite Allegion’s management expressing confidence in their internal strategies and growth potential, there is caution regarding the broader economic environment. The company’s CEO has indicated that it is too early to make precise forecasts for the upcoming years, which adds uncertainty to its future performance.
Furthermore, while Allegion has a history of solid EPS growth, the updated long-term target suggests a slight deceleration in growth. The company’s focus on acquisitions and capital allocation, particularly in existing markets, is noted, but the anticipated recovery of tariff costs and the potential for lower incremental margins in 2025 present challenges. Additionally, the current stock price significantly exceeds the price objective set by the analyst, reinforcing the Sell recommendation.
In another report released today, Barclays also maintained a Sell rating on the stock with a $128.00 price target.