JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Barclays upgraded Allegion (NYSE:ALLE) from Underweight to Equalweight on Thursday, while raising its price target to $163.00 from $156.00. The stock, which has shown strong returns over the past three months, is currently trading near its 52-week high, with InvestingPro data indicating the stock is in overbought territory.
The upgrade reflects Barclays’ view that downside risks for the security products manufacturer have diminished as key non-residential construction markets show signs of stabilization. The company’s strong financial position is evidenced by its perfect Piotroski Score of 9 and moderate debt levels, according to InvestingPro analysis.
Barclays noted that Allegion derives more than 75% of its sales from non-residential buildings and construction markets excluding data centers, segments that now appear to be emerging from their previous soft patch.
The firm pointed to healthier indicators for the main industry verticals Allegion serves compared to one or two years ago, though it stopped short of predicting a high-growth recovery for these markets.
Barclays expects Allegion to return to volume growth in 2025 after experiencing two consecutive years of volume declines in its top-line performance.
In other recent news, Allegion plc reported second-quarter earnings that surpassed analyst expectations, driven by strong demand in the non-residential sector. This positive earnings report highlights the company’s robust performance in its core markets. Additionally, Allegion has expanded its footprint in the UK by acquiring Brisant Secure Limited, a security hardware company known for its high-security lock cylinders and key systems under the Ultion brand. This acquisition will be integrated into Allegion’s International segment, enhancing its presence in the UK market.
The acquisition aligns with Allegion’s strategy to strengthen its portfolio in the security products sector. While specific financial terms of the acquisition were not disclosed, the move is expected to bolster Allegion’s offerings in residential security solutions. Analysts have not yet provided updates regarding any changes in stock ratings following these developments. However, the company’s recent earnings performance and strategic acquisition indicate a focus on growth and market expansion. These developments reflect Allegion’s ongoing efforts to enhance its competitive position in the global security market.
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