Key Takeaways From Allegion Analyst Ratings

During the last three months, 4 analysts shared their evaluations of Allegion ALLE, revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $129.75, with a high estimate of $140.00 and a low estimate of $119.00. Witnessing a positive shift, the current average has risen by 2.37% from the previous average price target of $126.75.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Allegion among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Allegion. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Allegion compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Allegion's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Allegion's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Allegion analyst ratings.

All You Need to Know About Allegion

Allegion is a global security products company with a portfolio of leading brands such as Schlage, Von Duprin, and LCN. The Ireland-domiciled company was created via a spinoff transaction from Ingersoll-Rand in December 2013. In fiscal 2022, Allegion generated 73% of sales in the United States. The company mainly competes with Sweden-based Assa Abloy and Switzerland-based Dormakaba.

Unraveling the Financial Story of Allegion

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Allegion's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 0.46%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Allegion's net margin excels beyond industry benchmarks, reaching 17.03%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Allegion's ROE stands out, surpassing industry averages. With an impressive ROE of 13.19%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Allegion's ROA excels beyond industry benchmarks, reaching 3.75%. This signifies efficient management of assets and strong financial health.

Debt Management: Allegion's debt-to-equity ratio stands notably higher than the industry average, reaching 1.64. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.