Analyst Brett Linzey of Mizuho Securities maintained a Buy rating on Allegion (ALLE – Research Report), with a price target of $140.00.
Brett Linzey’s rating is based on Allegion’s strong performance in several key financial metrics and a positive outlook for the future. In particular, Allegion’s adjusted earnings per share (EPS) surpassed expectations, coming in at $1.68 compared to the anticipated $1.56, demonstrating the company’s ability to exceed analyst projections. Additionally, the company exhibited a robust year-over-year operating margin growth, which is attributed to effective price management and productivity gains that have outweighed the impacts of inflation and necessary investments, even in the face of lower volumes. Allegion’s adjusted EBITDA margins also saw significant expansion, further reinforcing the company’s financial strength.
Moreover, Allegion’s organic sales growth, especially in the non-residential sector of the Americas, has been a driving force despite some softness in other segments. This growth is underpinned by a favorable pricing strategy that has effectively compensated for volume declines. The company’s guidance for the fiscal year 2024 brackets analyst expectations, indicating a realistic and potentially conservative forecast that suggests confidence in continued performance. With an anticipated organic sales expansion and solid projected available cash flow, Linzey’s Buy rating reflects a belief in Allegion’s capacity to maintain and possibly enhance its financial health in the coming year.
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Allegion (ALLE) Company Description:
Allegion Plc provides security products and solutions that keep people safe, secure and productiv. It operates through the following three geographic segments: Americas; Middle East, India, and Africa (EMEIA); and Asia Pacific. The Americas segment sells a range of products and solutions such locks, locksets, portable locks, key systems, door closers, exit devices, doors and door systems, electronic products, and access control and time and attendance systems. The EMEIA segment offers the same portfolio of products as the Americas segment as well as time and attendance and workforce productivity solutions. The Asia Pacific segment also provides the same product portfolio in addition to video analytics solutions. The company was founded on May 9, 2013 and is headquartered in Dublin, Ireland.
Read More on ALLE:
- Allegion sees FY24 adjusted EPS $7.00-$7.15, consensus $7.04
- Allegion reports Q4 adjusted EPS $1.68, consensus $1.59
- Allegion raises quarterly dividend by 7% to 48c per share
- Allegion acquires UK-based Boss Door Controls, terms undisclosed
- Astec appoints two members to board of directors, one director retiring
