Deutsche Bank Initiates Coverage on Otis Worldwide with a Hold Rating and $109 PT.

Deutsche Bank Initiates Coverage on Otis Worldwide with a Hold Rating and $109 PT.

Deutsche Bank has started its coverage of Otis Worldwide (OTIS, Financial) with a Hold rating, accompanied by a price target of $109 [1]. The analysis suggests that the company is unlikely to see a significant change in its valuation multiple due to its steady but average growth in both organic revenue and earnings. While there is a potential for slight improvement over current market expectations, the predicted increase is not substantial enough to greatly elevate the share price beyond its current level.

Based on the one-year price targets offered by 11 analysts, the average target price for Otis Worldwide Corp (OTIS, Financial) is $100.09 with a high estimate of $108.00 and a low estimate of $90.00 [1]. The average target implies an upside of 0.60% from the current price of $99.49. More detailed estimate data can be found on the Otis Worldwide Corp (OTIS) Forecast page.

The consensus recommendation from 15 brokerage firms is currently 2.9, indicating "Hold" status [1]. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

According to GuruFocus estimates, the estimated GF Value for Otis Worldwide Corp (OTIS, Financial) in one year is $99.50, suggesting an upside of 0.01% from the current price of $99.49 [1]. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance.

Otis Worldwide Corp (OTIS, Financial) reported a 5% growth in adjusted EPS for the first quarter, driven by solid growth in service and margin expansion [1]. The company announced an 8% increase in its dividend, marking a cumulative dividend increase of approximately 110% since its spin-off. Modernization orders increased by 12%, with a backlog up 14% at constant currency, indicating strong future growth potential. The service segment showed resilience with a 4% organic sales growth, supported by a 40 basis points expansion in adjusted operating margin.

However, new equipment organic sales declined by 7% in the quarter, with significant declines in China and the Americas [1]. The company faces a potential $45 million to $75 million negative impact on operating profit in 2025 due to tariffs on Chinese imports. Despite strong performance in other regions, new equipment orders in China declined by more than 20%, aligning with expectations of market stabilization later in the year. The repair growth was muted in the first quarter, up only low single digits, due to timing of backlog execution. Otis Worldwide Corp (OTIS) anticipates a mid-single-digit decline in global new equipment units for the year, with particular weakness expected in the Asia region.

Concurrent Investment Advisors LLC increased its stake in Otis Worldwide Corporation (NYSE:OTIS - Free Report) by 80.8% in the 1st quarter, according to the company in its most recent filing with the SEC [2]. The institutional investor owned 6,581 shares of the company's stock after acquiring an additional 2,942 shares during the quarter. Concurrent Investment Advisors LLC's holdings in Otis Worldwide were worth $679,000 at the end of the most recent reporting period.

Shares of OTIS traded up $0.64 during mid-day trading on Thursday, hitting $99.98. 1,590,257 shares of the company's stock were exchanged, compared to its average volume of 2,322,829. The stock's 50-day moving average is $96.97 and its 200-day moving average is $96.90. Otis Worldwide Corporation has a fifty-two week low of $89.70 and a fifty-two week high of $106.83. The company has a market cap of $39.46 billion, a price-to-earnings ratio of 26.24 and a beta of 0.98 [2].

Otis Worldwide Corporation last released its earnings results on Wednesday, April 23rd. The company reported $0.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.91 by $0.01. Otis Worldwide had a net margin of 10.83% and a negative return on equity of 31.72%. The company had revenue of $3.35 billion for the quarter, compared to analyst estimates of $3.41 billion. During the same period in the prior year, the business earned $0.88 EPS. The firm's quarterly revenue was down 2.5% on a year-over-year basis. As a group, equities research analysts anticipate that Otis Worldwide Corporation will post 4.04 EPS for the current year [2].

The business also recently announced a quarterly dividend, which was paid on Friday, June 6th. Investors of record on Friday, May 16th were issued a $0.42 dividend. The ex-dividend date of this dividend was Friday, May 16th. This is a positive change from Otis Worldwide's previous quarterly dividend of $0.39. This represents a $1.68 dividend on an annualized basis and a yield of 1.68%. Otis Worldwide's dividend payout ratio (DPR) is 44.09% [2].

A number of equities analysts have commented on the stock. Morgan Stanley lifted their target price on shares of Otis Worldwide from $97.00 to $105.00 and gave the stock an "equal weight" rating in a research note on Tuesday. JPMorgan Chase & Co. upped their price target on Otis Worldwide from $88.00 to $101.00 and gave the company a "neutral" rating in a research note on Friday, May 16th. Royal Bank Of Canada cut their price objective on Otis Worldwide from $109.00 to $105.00 and set an "outperform" rating for the company in a research report on Monday, April 28th. Wells Fargo & Company boosted their price objective on shares of Otis Worldwide from $95.00 to $100.00 and gave the company an "equal weight" rating in a report on Tuesday, July 1st. Finally, Barclays lifted their price target on shares of Otis Worldwide from $90.00 to $92.00 and gave the company an "underweight" rating in a research report on Wednesday. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $102.86 [2].

References:
[1] https://www.gurufocus.com/news/2973814/deutsche-bank-initiates-coverage-of-otis-worldwide-otis-with-hold-rating-otis-stock-news
[2] https://www.marketbeat.com/instant-alerts/filing-concurrent-investment-advisors-llc-boosts-stake-in-otis-worldwide-corporation-nyseotis-2025-07-10/