Stock Price & Analysis

Based on the recent market data and analysis, OTIS stock appears to be in a consolidation phase with mixed signals.

Technical Analysis The stock is currently trading at $96.67, showing an RSI of 61.16 which indicates neutral momentum. The stock is above its Fibonacci pivot point of $93.61, with resistance levels at $96.21 and $97.82.

Recent Developments A significant positive catalyst emerged on January 16, 2025, when Otis announced a new $2 billion share repurchase program. This demonstrates management's confidence in the company's financial strength and commitment to returning value to shareholders.

Analyst Sentiment Recent analyst actions show mixed views:

• JP Morgan maintained Hold rating with $108 target (17.07% upside)
• Barclays downgraded to Sell with $91 target (-0.86% downside)
• Wells Fargo maintained Hold with $100 target (8.55% upside)

Key Risks

• Significant exposure to Chinese market, which has seen declining new equipment sales for three consecutive years
• Currency fluctuation risks due to global operations with 50% of service revenues from EMEA and 35% from Asia

Conclusion At current price levels, OTIS stock appears fairly valued. The strong service business provides stability, but near-term headwinds in China and mixed analyst sentiment suggest holding current positions rather than initiating new ones. The stock is likely to trade within the $91-97 range in the short term.

Based on the provided data and recent market developments, here's the price prediction for OTIS stock in 2025:

OTIS stock is expected to reach $109-110 by mid-2025, driven by the company's recently announced $2 billion share repurchase program and strong analyst support including RBC Capital's $109 price target. The stock's technical indicators show an RSI of 61.16 suggesting moderate upward momentum while maintaining stability above its 20-day moving average of $93.29, indicating a healthy uptrend.

The positive outlook is further supported by Otis's robust service segment performance and strategic modernization initiatives that saw a 13.7% increase in organic modernization sales, though investors should monitor potential headwinds from the Chinese market which could impact growth.

The S1 support level for OTIS Stock is $91 ,The R1 resistant level for OTIS Stock is $96.21.

As of the end of day on 2025-01-24, the price of OTIS Stock was $96.67.

The target price for OTIS Stock according to analyst rating is 103.17, with the highest price target at 113.00 and the lowest at 91.00. Analysts have a Hold rating on OTIS Stock overall.

The market cap of OTIS is $38.6B.

Based on the provided data, here's a comprehensive analysis of OTIS's valuation:

Valuation Analysis: OTIS currently trades at a P/E ratio of 25.9x, which appears relatively high compared to its historical range. The EV/EBITDA multiple of 21.41x in Q3 2024 also suggests premium valuation levels. The Price-to-Sales ratio of 2.98x indicates the market is pricing in strong future growth expectations.

Recent Performance: The stock closed at $96.67 on January 24, 2025, showing a modest gain of 0.49% during regular trading hours. Trading volume was 1.56 million shares, indicating moderate market interest.

Analyst Sentiment: Recent analyst actions suggest mixed sentiment:

• JP Morgan maintained Hold rating with a $108 price target (17.07% upside)
• Barclays lowered price target to $91 from $94 with a Sell rating
• Multiple analysts have downgraded the stock in recent months, including Wolfe Research and Barclays

Key Concerns:

1. Chinese market exposure remains a significant risk, with the market declining 10% for three consecutive years
2. Currency fluctuation risks due to significant international revenue exposure
3. Premium valuation multiples compared to historical averages

Positive Factors:

1. Strong service segment with high margins and recurring revenue
2. Recently announced $2 billion share buyback program
3. Stable business model with high barriers to entry

Conclusion: Based on the current valuation metrics, technical indicators, and analyst sentiment, OTIS appears overvalued at current levels. The combination of premium multiples, recent analyst downgrades, and ongoing challenges in the Chinese market suggests limited upside potential in the near term.

Otis Worldwide Corporation is an elevator and escalator manufacturing, installation and service company. The Company’s segments include New Equipment and Service. The New Equipment segment designs, manufactures, sell and installs a range of passenger and freight elevators, and escalators and moving walkways for residential, commercial and infrastructure projects. Its elevator and escalator solutions include Gen2, Gen3, Gen360 and SkyRise. Through its Service segment, it performs maintenance and repair services, and modernization services to upgrade elevators and escalators. Through its network of service sales personnel, it sells its services directly to customers in all significant elevator and escalator verticals around the world. It serves customers in over 200 countries and territories around the world. The SkyRise advanced elevator platform combines cutting-edge technologies and precision engineering to deliver solutions for residential, commercial and mixed-use skyscrapers.

Based on the provided data and context, here is a comprehensive analysis for OTIS stock price prediction for 2030:

OTIS stock is projected to reach $145-155 by 2030, driven by the company's strong service-based business model and recent $2 billion share buyback program announced in January 2025. The recurring revenue from maintenance contracts, which generates approximately 85% of operating profits despite accounting for only two-thirds of revenue, provides stable cash flow foundation for long-term growth.

The conservative growth projection factors in potential headwinds from the Chinese market, which represents a significant portion of new equipment sales and has seen three consecutive years of 10% market decline. However, the company's global service portfolio of 2.3 million units and high-margin modernization business should help offset these challenges.

OTIS has a total of 71000 employees.