JPMorgan Downgrades Otis Worldwide Corp (OTIS) to Neutral

JPMorgan analyst Stephen Tusa Jr downgraded Otis Worldwide Corp (NYSE: OTIS) from Overweight to Neutral with a price target of $62.00 (from $100.00).

The analyst comments "We see a strong franchise in a fundamentally attractive global elevator industry that has moved beyond the experience of low growth and margin compression in its former life as part of a conglomerate. Looking forward, we see potential for continued tailwinds as an independent entity around (1) services growth led by initiatives around new product and commercial strategies and digital investments that should support better than historical maintenance unit portfolio growth, as well as China modernization opportunities, (2) a continued turn in the tide on margins as investments are harvested, (3) with opportunities around tax rate and deleveraging to set the company up well to support its EPS/FCF growth. We also believe the defensive services profile should allow earnings to hold up relatively well vs. others in the event of a downturn. This said, we believe the current premium reflects this outlook, particularly given de-rating at global elevator peers. As a result, we are Neutral on the stock."

For an analyst ratings summary and ratings history on Otis Worldwide Corp click here. For more ratings news on Otis Worldwide Corp click here.

Shares of Otis Worldwide Corp closed at $71.26 yesterday.

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