Do Wall Street Analysts Like Allegion Stock?

Allegion plc (ALLE), headquartered in Dublin, Ireland, manufactures and markets mechanical and electronic security products and solutions. Valued at $13.8 billion by market cap, the company offers door controls, locks, electronic security systems, and time and attendance solutions under brands like Schlage, CISA, and Von Duprin.

Shares of this global security products and solutions provider have underperformed the broader market over the past year. ALLE has declined 5.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.3%. In 2026, ALLE stock is up 2.1%, compared to the SPX’s 11.8% rise on a YTD basis. 

Narrowing the focus, ALLE’s underperformance is also apparent compared to the State Street Industrial Select Sector SPDR ETF (XLI). The exchange-traded fund has gained about 16.9% over the past year. Moreover, the ETF’s 15.4% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.

ALLE has underperformed primarily due to softness in commercial construction end-markets and input cost inflation. While demand for secular, high-margin electronic access control solutions remains resilient, volumes in legacy mechanical hardware lines have lagged under high interest rates and broader non-residential construction slowdowns. Profitability came under additional pressure from elevated raw material and logistics expenses, leading to an operating margin squeeze. Moreover, regional weakness across international markets particularly persistent macroeconomic headwinds in EMEA has further weighed on organic growth, preventing the stock from matching the broader momentum of industrial and technology-adjacent sectors.   

On Jul. 23, ALLE shares jumped 10.5% after reporting its Q2 results. Its adjusted EPS of $2.40 topped Wall Street expectations of $2.23. The company’s revenue was $1.2 billion, surpassing Wall Street forecasts of $1.1 billion. ALLE expects full-year adjusted EPS in the range of $8.85 to $9.

For the current fiscal year, ending in December, analysts expect ALLE’s EPS to grow 9.7% to $8.93 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.

Among the 12 analysts covering ALLE stock, the consensus is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, and eight “Holds.”

This configuration is more bullish than three months ago, with three analysts suggesting a “Strong Buy.”

On Aug. 21, JPMorgan Chase & Co. (JPM) analyst Tomohiko Sano maintained a “Hold” rating on ALLE and set a price target of $170, implying a potential upside of 4.5% from current levels.

The mean price target of $171.33 represents a 5.3% premium to ALLE’s current price levels. The Street-high price target of $190 suggests an upside potential of 16.8%.