Is Wall Street Bullish or Bearish?

Allegion plc (ALLE), headquartered in Dublin, Ireland, manufactures and markets mechanical and electronic security products and solutions. Valued at $11.2 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 7.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.9%. In 2026, ALLE stock is down 18.1%, compared to the SPX’s 9.2% rise on a YTD basis.

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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 21.6% over the past year. Moreover, the ETF’s 10.7% gains on a YTD basis outshine the stock’s losses over the same time frame.

Allegion’s underperformance stemmed from ERP system disruptions at a legacy European business that hurt production, though CEO John Stone stressed it was operational, not demand-driven, and expects a full recovery this year. The company also faced margin pressure from product mix and tariff/inflation costs, which management plans to offset through pricing actions and cost controls.

On Apr. 28, ALLE shares tumbled more than 7% after reporting its Q1 results. Its adjusted EPS of $1.80 missed Wall Street expectations of $1.88. The company’s revenue was $1.03 billion, beating Wall Street forecasts of $1.02 billion. ALLE expects full-year adjusted EPS in the range of $8.70 to $8.90.

For the current fiscal year, ending in December, analysts expect ALLE’s EPS to grow 7.4% to $8.74 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 13 analysts covering ALLE stock, the consensus is a “Moderate Buy.” That’s based on three “Strong Buy” ratings, and 10 “Holds.”

This configuration is less bullish than a month ago, with four analysts suggesting a “Strong Buy.”

On May 15, JPMorgan Chase & Co. (JPM) downgraded ALLE to a “Neutral” rating with a price target of $150, implying a potential upside of 15% from current levels.

The mean price target of $165.54 represents a 26.9% premium to ALLE’s current price levels. The Street-high price target of $189 suggests a notable upside potential of 44.9%.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com