Otis: Retains Focus on Service and Modernization Opportunities; Targets Unchanged at Investor Day

Otis Worldwide’s 2024 investor day left us feeling confident that the wide-moat stock remains well positioned to capitalize on growth opportunities that exist for its all-important elevator service business—for both its maintenance portfolio and in elevator modernizations—and to weather the ongoing cyclical and structural challenges, which prevail in new elevator equipment markets globally. Otis left its medium-term financial targets largely unchanged, which broadly accords with our existing estimates. As a result, we don’t expect to make a material revision to our $98 fair value estimate.