Wells Fargo analyst Deepa Raghavan raised his price target for Allegion to $115 from $108 saying that despite the Q2 miss, management is confident the second half of the year step up happens with both margins and revenues. The analyst reiterates an Outperform rating on the shares.

Backs FY24 revenue view up 1.5%-3.5%, consensus $3.73B. The company said, "The company affirms its previously disclosed full-year 2024 outlook: Full-year 2024 revenues are expected to increase 1.5% to 3.5% on a reported basis and increase 1% to 3% organically, after excluding the expected impacts of acquisitions, divestitures and foreign currency movements. Full-year 2024 reported EPS is expected to be in the range of $6.45 to $6.60, or $7.00 to $7.15 on an adjusted basis. The outlook assumes a headwind of approximately $0.37 based on a full-year adjusted effective tax rate of 18% to 19%, inclusive of the estimated impacts of global minimum tax. Adjustments to 2024 EPS include estimated impacts of approximately $0.46 per share for acquisition-related amortization, as well as $0.09 per share for restructuring and M&A. The outlook assumes an average diluted share count for the full year of approximately 88 million shares. The company expects full-year available cash flow of approximately $540 to $570 million."

Reports Q1 revenue $893.9M, consensus $884.25M. "Allegion's Q1 performance sets a solid foundation for the year," said John H. Stone, Allegion President and CEO. "Our team is executing at a high level and expanded margins in the quarter. Additionally, we are very proud to have earned a 2024 Gallup Exceptional Workplace Award for having one of the most engaged workforces in the world."