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Otis Worldwide Corp. (OTIS-N) recently reported mixed quarterly results with a slight miss on both top and bottom lines, leading to a cautious approach by investors despite its strong historical performance. Although shares experienced a minor dip due to concerns over weak sales in China, experts maintain optimism about the company's long-term prospects, especially given its 19-20% share in a global oligopoly and the stable demand for service contracts. Approximately 65% of global customers choose service contracts, with the figure in China on the rise, indicating an opportunity for growth. Overall, the aging infrastructure of elevators also suggests a growing need for repairs and replacements, which could provide a further revenue stream. Analysts mostly view this as a temporary setback, with projections for earnings growth around 9% and a notable installed base contributing to a favorable market position.
Has undeperformed the market because new sales in China have been weak. However, Otis is in an oligopoly with a leading share of 19%. Also, service contracts are very profitable with 65% of global customers opting into a service contract when they buy their elevator, and 50% in China, but that number is climbing. She expects earnings growth around 9%. Also, elevators are aging and need repair/replacement.
Part of a global oligopoly, with ~20% share of the global market. Very large installed base, and margin for servicing elevators is about 3x that of selling the elevators. Recent issues from demand in China, should rebound medium term. Still, it's in a great position worldwide. 24x PE, attractive. Yield is 1.5%.
(Analysts’ price target is $103.69)Today, they reported a solid quarter: a modest top and bottom line beat, and strong and surprising organic growth. Shares have already rallied 32% from last fall's bottom, it popped another 2.8% today to make a new 52-week high. Wall Street remains bearish on non-residential construction, which benefits Otis.
She's likes the elevator industry; it's an oligopoly. The servicing side of the business has high, recurring margins. This would cushion the company if we enter weaker economic times. Last year saw growth for Otis in China. Also, elevators in Europe are aging, where Otis has a big slice of the market. Another tailwind is workers returning to offices and those buildings need elevators. Also, Otis is making their elevators go digital which helps servicing. Otis shares have pulled back with the market, but she would slowly add more shares.
Otis Worldwide Corp. is a American stock, trading under the symbol OTIS-N on the New York Stock Exchange (OTIS). It is usually referred to as NYSE:OTIS or OTIS-N
In the last year, 3 stock analysts published opinions about OTIS-N. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Otis Worldwide Corp..
Otis Worldwide Corp. was recommended as a Top Pick by on . Read the latest stock experts ratings for Otis Worldwide Corp..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered Otis Worldwide Corp. In the last year. It is a trending stock that is worth watching.
On 2025-05-08, Otis Worldwide Corp. (OTIS-N) stock closed at a price of $97.32.
It just reported a slight miss and a light forecast, but shares fell a little because of its steady track record.