Zacks Investment Research downgraded shares of Allegion Plc (ALLE) from OUTPERFORM to NEUTRAL on March 06, 2015, with a target price of $61.00.
We have reverted to a Neutral recommendation from Outperform, on Allegion, as its fourth-quarter 2014 revenues missed the Zacks Consensus Estimate, which was mainly due to the sluggish European markets. However, adjusted earnings of $0.76 per share increased 26.7% year over year driven by strong North American revenues and healthy margins. Although revenues missed the consensus mark by 0.3%, it increased 5.5% year over year as strength in the Americas and Asia Pacific segments was offset by lower sales in Europe. Going forward, we are encouraged by Allegion's strong and diverse brand portfolio and leading market share position. Further, the company is trying to improve long-term results by focusing on strategic acquisitions, brand support via strong advertising, regular innovations and strong cash generation. However, we remain concerned about the global macroeconomic uncertainties and a moderate slowdown in the U.S. housing recovery.
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