Otis Worldwide Corp Shares Surpass Analyst Price Targets—What Next?
Recently, shares of Otis Worldwide Corp (Symbol: OTIS) traded above the average analyst 12-month target price of $101.40, reaching $102.57 per share. When this occurs, analysts typically face two choices: downgrade their valuation or adjust their target price higher. The decision may also depend on the underlying business factors driving the increase in stock price. If positive developments are present, analysts might consider raising their target price.
Within the Zacks coverage universe, 10 different analyst targets contribute to the average for Otis Worldwide Corp. Notably, some analysts have target prices below the average, with one predicting a price of $90.00, while another stands out with a target of $113.00. The standard deviation for these targets is $7.705.
The primary reason to examine the average OTIS price target is to leverage a “wisdom of crowds” approach, synthesizing input from multiple analysts rather than relying solely on one expert’s opinion. With OTIS now trading above the average target of $101.40/share, it prompts investors to reassess their positions. They need to consider whether $101.40 is merely a stepping stone to an even higher target or if the valuation has become too stretched, warranting a reconsideration of their investments.
| Recent OTIS Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 1 | 1 | 2 | 2 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 6 | 6 | 6 | 7 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 2 | 2 | 2 | 1 |
| Average rating: | 3.1 | 3.1 | 2.91 | 2.73 |
The average rating in the table reflects a scale from 1 to 5, with 1 being Strong Buy and 5 being Strong Sell. This analysis incorporates data provided by Zacks Investment Research via Quandl.com. To obtain the latest Zacks research report on OTIS—free of charge.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
