Otis Worldwide (OTIS) shares are "unlikely" to outperform as its earnings torque is "relatively low" during economic recovery, Deutsche Bank said in a Monday note.
Stock price outperformance may occur at the highest level because of a valuation multiple rerating and raised consensus estimates, analyst Nicole DeBlase wrote, adding that the company had a roughly average organic revenue/earnings growth profile.
"While we do see modest upside to current consensus forecasts, the magnitude is not powerful enough to push our target price significantly above the current share price," DeBlase said.
Deutsche Bank initiated Otis Worldwide at a hold rating with a $109 price target.
Price: 98.96, Change: -0.53, Percent Change: -0.53
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.