What 5 Analyst Ratings Have To Say About Allegion

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Allegion ALLE in the last three months.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $125.2, along with a high estimate of $137.00 and a low estimate of $112.00. Witnessing a positive shift, the current average has risen by 2.45% from the previous average price target of $122.20.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Allegion by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Allegion. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Allegion compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Allegion's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Allegion's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Allegion analyst ratings.

Delving into Allegion's Background

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 2023, Allegion generated 75% of sales in the United States. The company primarily competes with Sweden-based Assa Abloy and Switzerland-based Dormakaba.

Allegion: Financial Performance Dissected

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Allegion's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 5.82%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 16.09%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Allegion's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 11.2%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 3.43%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.69, caution is advised due to increased financial risk.

The Basics of Analyst Ratings

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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