-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month price target by $12 to $200 on an average of a forward P/E of 18x our 2027 EPS view of $9.45 (-$0.12), which yields $170, and our DCF model, assuming a terminal growth rate of 2.5%, WACC of 5.7% and 10-year FCFF CAGR of 18.2%, which yields $230. We lower our 2026 EPS estimate by $0.06 to $8.80. Although ALLE missed Q1 estimates, we keep our Strong Buy view due to strong execution fundamentals and attractive growth prospects, supported by sales expansion and margin improvement. We see continued sales and margin growth in 2026/2027, led by ALLE's electronics portfolio (up low double digits with secular tailwinds from smart building adoption), accretive M&A, and strength in nonresidential markets, particularly data centers, hospitality, office, and health care markets (~75% of ALLE's revenue base). Strong cash flow and a healthy balance sheet underpin our view. ALLE is demonstrating defensive characteristics through aftermarket exposure and growth potential through technology adoption.