Otis Worldwide Q2 Preview: Anticipating Weak Equipment Sales
Summary
- I reiterate a Sell rating on Otis Worldwide Corporation, with a fair value of $82 per share, due to a persistently weak growth outlook.
- Otis faces ongoing headwinds from sluggish China real estate and global housing markets, resulting in declining new equipment sales.
- Management's optimism on China's recovery appears premature, especially amid continued property price declines and U.S.-China tariff uncertainties.
- While the OTIS service business shows resilience, near-term growth remains limited; I expect recovery only from FY26 onwards.
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