Allegion plc

(New York Stock Exchange)
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Somewhat Bearish -25

BofA Maintains a Neutral Rating on Allegion plc (ALLE)

AI-generated analysis

πŸ“‰ Bank of America lowered its price target for Allegion (ALLE) to $150 from $157 on April 29, 2026.

🀝 BofA maintained a Neutral rating despite the price target reduction due to lower sector multiples.

πŸ’° Allegion reported Q1 2026 revenue of $1.03 billion, marking a 9.7% increase year-over-year.

πŸ“Š Adjusted earnings per share fell to $1.80, representing a 3.2% decline compared to the prior year.

πŸ“‰ Operating income decreased by 0.6% quarter-over-quarter to $195.3 million.

πŸ“‰ Margins contracted with operating margins at 18.9% and adjusted operating margins at 21.2%, both down from last year.

🌎 CEO John H. Stone noted significant revenue growth in the Americas' non-residential and electronics businesses.

🏒 Allegion operates through two main segments: Allegion Americas and Allegion International.

πŸ”’ The company specializes in security products and solutions within the industrial sector.

Bullish Signals
  • Allegion achieved a 9.7% year-over-year revenue increase, generating $1.03 billion in Q1 2026 revenue.
  • The Americas' non-residential and electronics business segments drove significant revenue growth according to CEO John H. Stone.
Risk Factors
  • Bank of America lowered its price target from $157 to $150 citing less-than-expected first-quarter performance.
  • Adjusted earnings per share declined by 3.2% year-over-year to $1.80.
  • Operating income decreased by 0.6% quarter-over-quarter to $195.3 million.
  • Both reported operating margins (18.9%) and adjusted operating margins (21.2%) were lower than the previous year.
Full Analysis
On April 29, 2026, Bank of America lowered its price target for Allegion plc (NYSE: ALLE) to $150 from $157 while maintaining a Neutral rating. The analyst firm cited less-than-expected first-quarter performance and lower sector multiples as primary reasons for the adjustment. Allegion reported Q1 2026 revenue of $1.03 billion, representing a 9.7% year-over-year increase. However, adjusted earnings per share declined to $1.80, down 3.2% from the prior year, while operating income decreased slightly by 0.6% quarter-over-quarter. The company's margins faced pressure in the quarter, with reported operating margins at 18.9% and adjusted operating margins at 21.2%, both lower than the previous year. CEO John H. Stone highlighted strong revenue growth specifically within the Americas' non-residential and electronics business segments.