4 Analysts Have This To Say About Allegion

Across the recent three months, 4 analysts have shared their insights on Allegion ALLE, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Allegion and provided 12-month price targets. The average target is $137.0, accompanied by a high estimate of $144.00 and a low estimate of $130.00. Experiencing a 4.7% decline, the current average is now lower than the previous average price target of $143.75.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Allegion is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Allegion. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Allegion compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Allegion's market position. Stay informed and make data-driven decisions with the assistance of 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.

Financial Insights: Allegion

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Allegion displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 5.36%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Allegion's net margin excels beyond industry benchmarks, reaching 18.01%. 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 11.63%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Allegion's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.57%, the company showcases efficient use of assets and strong financial health.

Debt Management: Allegion's debt-to-equity ratio stands notably higher than the industry average, reaching 1.53. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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