First Read Otis Worldwide Corp 2Q First look; Operational miss, Full year guidance lowered

研报英文原文证据摘录

First Read Otis Worldwide Corp 2Q First look; Operational miss, Full year guidance lowered

Forecast returns

Forecast price appreciation 20.9%

Forecast dividend yield 2.6%

Forecast stock return 23.5%

Market return assumption 9.3%

Forecast excess return 14.2%

Company Description

Otis is a global leader in the elevator and escalator market. Its business is divided into two

segments: New Equipment, which includes the design, manufacture, and installation of

elevators, escalators, and moving walkways; and Service, which includes maintenance, repair,

and upgrades.

Valuation Method and Risk Statement

Valuation: Our price target for OTIS is based on relative P/E methodology.

Risk Statement: The Electrical Equipment and Multi Industry sector faces a broad range of

risks. It is cyclical in nature with exposure to the underlying cycles inherent in everything from

aviation, auto, trucking and trains to construction and consumer electronics to mining,

power, oil and gas and more depending on the specific stock. EEMI companies are subject to

risks associated with unexpected changes in the underlying global macro environment,

currency and interest rate movements, commodity price inflation as well as company-specific

execution, M&A, integration, labor relations and changes in the competitive or regulatory

environment. These changes can be in the form of product technology, e-commerce and

other digital disruption and/or channel disintermediation. Capacity and related pricing

pressures are also a risk through the cycle. Finally, these multinational companies are subject

to policy changes taking place in the United States and internationally, including those related

to environmental regulation and tariffs.