Imperial Capital Upgrades Allegion (ALLE) to Outperform

November 1, 2016 7:14 AM EDT
Get Alerts ALLE Hot Sheet
Price: $64.87 -0.9%

Rating Summary:
    11 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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Imperial Capital upgraded Allegion (NYSE: ALLE) from In-Line to Outperform with a price target of $72.00 (from $79.00).

Analyst Jeff Kessler commented, "Although we are lowering our price target to $72, we are raising our rating to Outperform because we believe the ALLE shares are trading at a discount relative to its valuation and 12-18 month growth potential. We believe that the ALLE shares can achieve our price target of $72 based on a valuation of 14.5x our FY17E adjusted EBITDA. Allegion has vaulted into the fastest growing company among the large lock and access control companies, in a sector of the security industry that is getting increasing priority. Although we are positive on the commercial construction and the single-family housing market in the U.S., we are cautious about the growth coming out of the Asia Pacific region, select European regions and select verticals in the U.S. On 10/25/16, United Technologies (UTX) held its 3Q16 earnings conference call, and management
noted that it is seeing a slowdown in construction activity in the U.K. as a result of the Brexit vote, but the rest of Europe appears to be improving slowly. We believe that this slow-but-steady improvement could be enough to offset the slowdown in the U.K."

For an analyst ratings summary and ratings history on Allegion click here. For more ratings news on Allegion click here.

Shares of Allegion closed at $63.84 yesterday.



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Analyst Comments, Analyst PT Change, Upgrades

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