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Investing.com - Mizuho raised its price target on Allegion (NYSE:ALLE) to $170.00 from $155.00 on Wednesday, while maintaining a Neutral rating on the security solutions provider. The stock, currently trading at $171.53 and near its 52-week high of $172.66, has shown remarkable strength with a 35.7% return over the past six months. According to InvestingPro data, 11 analysts have recently revised their earnings expectations upward for the upcoming period.
The price target increase follows meetings between Mizuho and Allegion CEO John Stone and VP of Investor Relations Josh Pokrzywinski in Boston, where management delivered a consistent message on end-markets described as "resilient albeit tough/mixed."
Mizuho noted that Allegion has shown a step-up in operational rigor as the company tackles tariffs and growth while managing steady completed acquisitions, with the company’s prospective dealmaking looking encouraging with an active pipeline.
The research firm highlighted that heightened M&A intent, bolstered deal teams, and a favorable buyers’ market have led to increased deal velocity, with Allegion planning to maintain discipline while viewing the M&A opportunities as "large and deep with plenty more to do."
Despite acknowledging that Allegion is "executing extremely well" under Stone’s leadership despite the sluggish market backdrop, Mizuho maintained its Neutral rating as it awaits signs that underlying markets are inflecting, with the price target increase reflecting "rising rate cut hopes and higher peer valuations."
In other recent news, Allegion plc reported second-quarter earnings that surpassed analyst expectations, driven by strong demand in the non-residential sector. The positive earnings report highlights the company’s robust performance in a stabilizing market. Additionally, Allegion has expanded its international footprint by acquiring Brisant Secure Limited, a UK-based security hardware provider known for its high-security lock cylinders and key systems. This acquisition aims to strengthen Allegion’s presence in the UK market and enhance its product offerings. In another development, Barclays upgraded Allegion’s stock from Underweight to Equalweight, citing improved conditions in key non-residential construction markets. Barclays also raised its price target for Allegion to $163.00, reflecting a more optimistic outlook. These recent developments underscore Allegion’s strategic moves to bolster its market position and capitalize on emerging opportunities.
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