Otis Worldwide (NYSE:OTIS) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Otis Worldwide has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating, reflecting analysts' concerns about the company's future performance.
• The company reported earnings of $1.05 per share for the last quarter, slightly beating estimates but faced a 0.2% decline in year-over-year revenue.
• Current estimates for Otis Worldwide's FY2026 earnings are projected at $4.19 EPS, indicating growth expectations despite recent downgrades in ratings and price targets from various analysts.

Otis Worldwide (NYSE:OTIS - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Monday,Zacks.com reports. Zacks Research also issued estimates for Otis Worldwide's Q1 2026 earnings at $0.96 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $1.08 EPS, FY2026 earnings at $4.19 EPS, Q1 2027 earnings at $1.07 EPS, Q2 2027 earnings at $1.15 EPS and FY2027 earnings at $4.63 EPS.

OTIS has been the subject of several other reports. Deutsche Bank Aktiengesellschaft began coverage on shares of Otis Worldwide in a research report on Monday, July 14th. They set a "hold" rating and a $109.00 price target for the company. Royal Bank Of Canada cut their price target on shares of Otis Worldwide from $108.00 to $105.00 and set an "outperform" rating for the company in a research report on Monday, July 28th. Wells Fargo & Company cut their price target on shares of Otis Worldwide from $100.00 to $93.00 and set an "equal weight" rating for the company in a research report on Thursday, July 24th. Barclays cut their price target on shares of Otis Worldwide from $92.00 to $90.00 and set an "underweight" rating for the company in a research report on Thursday, July 24th. Finally, JPMorgan Chase & Co. cut their price target on shares of Otis Worldwide from $109.00 to $101.00 and set an "overweight" rating for the company in a research report on Thursday, July 24th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $102.50.

Otis Worldwide Stock Down 0.4%

OTIS opened at $89.23 on Monday. The business's fifty day simple moving average is $89.95 and its 200 day simple moving average is $95.10. Otis Worldwide has a 52 week low of $84.25 and a 52 week high of $106.83. The stock has a market cap of $35.02 billion, a PE ratio of 23.61, a P/E/G ratio of 4.31 and a beta of 0.98.

Otis Worldwide (NYSE:OTIS - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.02. Otis Worldwide had a net margin of 10.68% and a negative return on equity of 30.95%. The business had revenue of $3.60 billion during the quarter, compared to analyst estimates of $3.73 billion. During the same period in the prior year, the business posted $1.06 earnings per share. The company's revenue was down .2% on a year-over-year basis. Otis Worldwide has set its FY 2025 guidance at 4.000-4.10 EPS. As a group, equities analysts anticipate that Otis Worldwide will post 4.04 earnings per share for the current year.

Hedge Funds Weigh In On Otis Worldwide

Institutional investors have recently bought and sold shares of the stock. NBC Securities Inc. bought a new position in Otis Worldwide in the first quarter worth about $25,000. Wayfinding Financial LLC bought a new position in Otis Worldwide in the first quarter worth about $31,000. Cheviot Value Management LLC bought a new position in Otis Worldwide in the first quarter worth about $31,000. Chilton Capital Management LLC bought a new position in Otis Worldwide in the second quarter worth about $31,000. Finally, Nemes Rush Group LLC raised its stake in Otis Worldwide by 75.4% in the second quarter. Nemes Rush Group LLC now owns 314 shares of the company's stock worth $31,000 after buying an additional 135 shares in the last quarter. 88.03% of the stock is owned by institutional investors.

About Otis Worldwide

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects.

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