Will Enhanced LCN and Wallet Access Solutions Shift Allegion's (ALLE) Innovation and Margin Story?

• In November 2025, Allegion introduced major enhancements to its LCN 2800IQ and 9500IQ Senior Swing series, including AdaptivIQ™ self-adjusting technology, and showcased expanded wallet-based access control solutions for multifamily properties at OPTECH 2025.
• These developments underscore Allegion's focus on innovation and digital connectivity to improve efficiency, lower maintenance, and deliver seamless access across high-traffic and multifamily environments.
• We'll explore how Allegion's new AdaptivIQ technology and digital access solutions could influence its outlook for future growth and margins.

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Allegion Investment Narrative Recap

Allegion’s story centers around driving growth from smart and connected security solutions, especially as demand rises in nonresidential and multifamily spaces. While recent product launches highlight Allegion’s innovative push, the most important short-term catalyst remains continued strength in nonresidential markets, and the principal risk is any downturn or deceleration in those markets, this latest announcement does not materially change either dynamic.

Among the recent updates, Allegion’s debut of wallet-based access control at OPTECH 2025 stands out, showing how quickly digital integration is becoming central to its offering. This aligns with the company’s ambition to enhance recurring revenues through software and smart hardware, which has become an essential growth driver for Allegion in the current environment.

By contrast, investors should be aware of how softness in residential Americas and reliance on nonresidential cycles could pose challenges if...

Read the full narrative on Allegion (it's free!)

Allegion's narrative projects $4.8 billion revenue and $825.7 million earnings by 2028. This requires 7.1% yearly revenue growth and a $199.5 million earnings increase from $626.2 million.

Uncover how Allegion's forecasts yield a $183.09 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Allegion range between US$137.42 and US$183.09. While many see digital expansion fueling future growth, opinions on Allegion’s outlook for nonresidential market resilience can differ greatly, take a moment to explore several viewpoints.

Explore 3 other fair value estimates on Allegion - why the stock might be worth as much as 10% more than the current price!

Build Your Own Allegion Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Allegion research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Allegion research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Allegion's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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