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Otis Worldwide Corporation (OTIS), headquartered in Farmington, Connecticut, specializes in manufacturing, installing, and servicing elevators and escalators across the U.S., China, and global markets. With a market capitalization of $39.9 billion, the company operates through its New Equipment and Service segments.
The elevator manufacturer has underperformed the broader market over the past year. Over the past 52 weeks, OTIS gained 17.7%, lagging behind the S&P 500 Index’s ($SPX) 31.1% returns. In 2024, OTIS is up 11.7% compared to SPX’s 24.7% gains on a YTD basis.
Narrowing the focus, OTIS has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) 32.9% returns over the past 52 weeks and 23.4% gains on a YTD basis.
Otis Worldwide announced its Q3 earnings on Oct. 30, and its shares dropped 3.1% as the company missed both of its topline and bottom line consensus estimates.
For the current fiscal year, ending in December, analysts expect Otis Worldwide to report an EPS growth of 8.8% annually to $3.85. Moreover, the company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters, while failing to do so on another occasion.
Among the 11 analysts covering the OTIS stock, the consensus rating is a “Moderate Buy.” That’s based on two “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
This configuration is less bullish than two months ago when three analysts suggested a “Strong Buy” for the stock.
On Nov. 13, UBS Group AG (UBS) initiated coverage on Otis Worldwide with a "neutral" rating and a price target of $113.
OTIS’ mean price target of $103.10 represents a premium of 3.2% from current price levels. The street-high target of $113 indicates a potential upside of 13.1%.
