Barclays upgraded Allegion (NYSE:ALLE) from Underweight to Equal Weight and raised its price target to $163.00 from $156.00.
The bank said it had previously been cautious on Allegion due to its heavy exposure to non-residential building and construction markets, excluding data centers, which account for more than 75% of sales. However, it now sees more limited downside risk, with large parts of the Americas non-residential market appearing to have emerged from a soft patch.
Although a sharp growth rebound is not expected, Barclays noted that indicators for key industry verticals served by Allegion look healthier than in recent years. The firm expects the company to return to volume growth in 2025 after two consecutive years of declines.
