Analyst Ratings For Allegion

Analysts' ratings for Allegion ALLE over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $147.25, with a high estimate of $152.00 and a low estimate of $135.00. Witnessing a positive shift, the current average has risen by 10.3% from the previous average price target of $133.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

A clear picture of Allegion's perception among financial experts is painted 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: 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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Allegion compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Allegion's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

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.

Unraveling the Financial Story of Allegion

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Allegion showcased positive performance, achieving a revenue growth rate of 5.82% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in 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 ROE stands out, surpassing industry averages. With an impressive ROE of 11.2%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Allegion's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 3.43%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Allegion's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.69, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a 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.