
Otis Worldwide (OTIS) Stock Forecast & Price Target
Otis Worldwide (OTIS) Analyst Ratings
Bulls say
Otis Worldwide has demonstrated robust financial performance, achieving a 7.3% year-over-year growth in 2023 and a remarkable 15% increase in its backlog at year-end, indicating strong demand for its products and services. The company's service segment in China has shown significant improvement, now accounting for nearly a third of in-country sales, while its revenue share in the Chinese market has increased from 31.1% in 2019 to 35.5% in 2023, reflecting a growing competitive advantage. Furthermore, Otis has outperformed key peers in new equipment market share, service portfolio unit growth, and margin progression since 2020, presenting a solid foundation for continued financial strength and future growth.
Bears say
Otis Worldwide's negative outlook can be attributed to a significant downturn in the Chinese property market, which has led to a 23% year-over-year decline in profit for Otis China in the first half of 2024. The company's net profit in 2023 was 29% below the peak levels of 2015, reflecting the impact of past pricing wars and a decline in margins, which fell by 300 basis points in the same period. Additionally, the share of Otis China's net profit contribution to the global parent company decreased from 20.2% in 2020 to 16.8% by early 2024, highlighting the waning influence of the Chinese market on Otis Worldwide's financial performance.
This aggregate rating is based on analysts' research of Otis Worldwide and is not a guaranteed prediction by Public.com or investment advice.
Otis Worldwide (OTIS) Analyst Forecast & Price Prediction
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