Morgan Stanley Initiates Equal-Weight Coverage of Otis Worldwide

Morgan Stanley has initiated coverage of Otis Worldwide with an Equal-Weight recommendation, suggesting a 9.78% price upside. Projected revenue growth stands at 3.62%. Investors should note recent changes in institutional holdings which signal mixed sentiment.

Date: 08-09-2024

AI Rating: 6

Morgan Stanley's initiation of coverage for Otis Worldwide (NYSE:OTIS) with an Equal-Weight recommendation indicates a cautious yet balanced outlook from the analyst. With an average one-year price target of $100.37/share, representing a 9.78% upside from the last closing price of $91.43/share, this projection is slightly positive.

The anticipated annual revenue growth for Otis Worldwide is projected at 3.62%, which is a moderate increase; however, it may not be significant enough to heavily influence investor sentiment positively.

Moreover, the forecasted non-GAAP Earnings Per Share (EPS) of 3.81 indicates a steady earnings performance, benefiting long-term investors who may rely on such metrics for decision-making.

Regarding institutional sentiment, there are currently 2,064 funds0.10% over the last quarter, reflecting some cautiousness among investors. Interestingly, while institutional ownership saw a minor increase of 2.09% to reach 406,863K shares, the average portfolio weight increased by 1.26%, suggesting a potential increase in confidence among existing shareholders.

The put/call ratio standing at 0.55 further indicates a bullish outlook, as more call options are being favored over puts.

In conclusion, Otis Worldwide appears to be on a stable trajectory with a reasonable growth forecast but lacks strong enthusiasm in recent institutional trading dynamics. Investors may want to monitor these indicators closely while considering their investment strategy.

Stocks: OTIS