Allegion price target raised to $60 from $54 at MKM Partners MKM Partners increased its price target on Allegion after attending the company's Analyst Day. The firm thinks the company's Europe business is running ahead of expectations, while it is poised to deliver beat and raise results. The firm keeps a Buy rating on the shares.
Allegion sees FY15 revenue to decline 2.5%-3.5%, consensus $2.07B The revenue guidance reflects unfavorable foreign exchange rates and the Venezuelan devaluation. The improvement in total revenue projections versus prior guidance reflects the stronger Americas organic volume and inclusion of the previously announced acquisition of Brio to the Asia Pacific outlook. Sees FY15 effective tax rate of 22% from continuing operations. Targets FY15 available cash flow of approximately 95% of net earnings from continuing operations.
Allegion raises FY15 adjusted EPS to $2.70-$2.80 from $2.65-$2.75 Consensus for FY15 EPS is $2.79. Sees FY15 organic revenue, which excludes currency and acquisitions, to increase 4%-5% YoY. Consensus is $2.07B. The improvement in organic growth versus prior guidance is driven by stronger volume in the Americas.