JPMorgan Cuts Allegion Price Target to $180, Highlights 22.4% Margin
JPMorgan cut Allegion’s price target to $180 from $190 after Q4 revenue topped $1B (+9.3%), adjusted EPS hit $1.94 and operating margin reached 22.4%. Net debt/EBITDA was 1.6x, full-year cash flow rose to $685.7M, and 2026 guidance calls for EPS of $8.70–$8.90 with 5–7% revenue growth.
1. JPMorgan Revises Price Target and Rating
JPMorgan cut Allegion’s price target to $180 from $190 and maintained an overweight rating, citing sustained margin performance despite slower organic growth.
2. Strong Q4 Financial Performance
Allegion posted Q4 revenue of $1 billion, a 9.3% year-over-year increase, with adjusted EPS of $1.94 and an operating margin of 22.4%.
3. Balance Sheet and Capital Allocation
Net debt to adjusted EBITDA closed at 1.6x and full-year available cash flow rose to $685.7 million; the company returned $175 million in dividends, repurchased $80 million in shares and invested $630 million in acquisitions.
4. 2026 Outlook
Guidance for 2026 forecasts adjusted EPS of $8.70–$8.90 and revenue growth of 5–7%, led by electronics and non-residential segments.