JPMorgan Sees Resilient Margins at Allegion plc (ALLE) Despite Growth Headwinds
Allegion plc (NYSE:ALLE) is among the 9 Best Video Surveillance and Private Security Stocks to Buy.
Allegion plc (NYSE:ALLE) is among the best video surveillance stocks.
TheFly reported on February 18 that JPMorgan lowered its price target on ALLE to $180 from $190 and maintained an Overweight rating on the stock following the company’s fourth-quarter report. The analyst highlighted that, despite ongoing growth challenges, the company showed resilient margin performance.
Allegion plc (NYSE:ALLE) reported strong fourth-quarter results a day earlier on February 17. According to the report, Q4 revenue topped $1 billion, a 9.3% increase from the previous year. Adjusted EPS was $1.94, and the adjusted operating margin was 22.4%. The net debt to adjusted EBITDA ratio closed the year at 1.6x, while the full-year available cash flow grew to $685.7 million.
The report also points out that declines in America's residential and small overseas organic revenue offset growth in 2025, which was mostly driven by electronics and the Americas' non-residential sector. Acquisitions and currency factors also partially concealed underlying difficulties.
The corporation returned capital to shareholders through $175 million in dividends and $80 million in share repurchases, alongside deploying roughly $630 million on acquisitions.
Moreover, for 2026, ALLE guided adjusted EPS to $8.70–$8.90, with total revenue expected to grow 5%–7%, which is led by electronics and non-residential segments.
Allegion plc (NYSE:ALLE) provides security and safety solutions, including access control and electronic locking systems. ALLE focuses on protecting homes, businesses, and critical infrastructure with reliable, innovative technologies for video surveillance and private security.
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