By Peet Serfontein & Motheo Tlhagale
Otis is a United States (US)-based firm specialising in the manufacturing, installation, and servicing of elevators, escalators, and moving walkways across the globe. Headquartered in Farmington, Connecticut, Otis has operated independently since its 2020 spin-off and maintains a significant global presence with over 2.4 million customer units and a workforce of approximately 72 000 employees.
The company is structured around two core segments: new equipment, which focuses on delivering advanced vertical transportation systems, and a robust service division that provides maintenance and modernisation solutions for its extensive installed base.
Technically, the formation of a developing symmetrical triangle pattern highlights a bullish outlook for the stock (see the black converging trendlines as well as the insert). This converging price structure reflects a period of consolidation, where buying and selling pressures are gradually aligning.
The Fisher Transform indicator shows a bullish bias across timeframes, with the daily chart turning upward, the weekly view stabilising from oversold levels, and the monthly chart holding relatively elevated. This alignment suggests downside pressure is easing, and momentum is building for a potential recovery.
The stock is trading below its 200-day simple moving average (SMA), reflecting short-term pressure, but remains above its 200-week average, which suggests the long-term trend is intact. This setup indicates that while near-term momentum is challenged, the broader cycle continues to offer support for a potential recovery.
The beginning of upside price momentum, as indicated by the Moving Average Convergence Divergence (MACD) histogram, adds further support to the bullish outlook. Additionally, the sharp upward trend in the On-Balance Volume (OBV) indicator reinforces the positive sentiment.
| Share Information | |
|---|---|
| Share Code | OTIS |
| Industry | Capital Goods |
| Market Capital (USD) | 35.88 billion |
| One Year Total Return | -10.38% |
| Return Year-to-Date | 0.02% |
| Current Price (USD) | 91.43 |
| 52 Week High (USD) | 106.83 |
| 52 Week Low (USD) | 84.25 |
| Financial Year End | December |
| The share price is flat year-to-date and with a beta of 0.74 we expect lower volatility compared to the market | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 3.83 | 4.03 | 4.44 | 4.90 |
| Growth (%) | 5.09 | 10.31 | 10.25 | |
| Dividend Per Share (USD) | 1.51 | 1.59 | 1.72 | 1.86 |
| Growth (%) | 5.50 | 7.97 | 7.97 | |
| Forward PE (times) | 22.72 | 20.59 | 18.68 | |
| Forward Dividend Yield (%) | 1.74 | 1.88 | 2.03 | |
| Earnings growth expectations are decent over the medium term. | ||||
Buy/Sell Rationale:
Technical Analysis:
Long-term fundamental view:
| Share Name and Position | MSCI - Buy (Continue to hold) |
KMI - Buy (Continue to hold) |
ADTN - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 567.02 | 26.74 | 9.28 |
| Current Price | 567.41 | 28.31 | 9.38 |
| Movement | +0.1% | +5.9% | +1.1% |
| Comment |
The stock is forming a symmetrical triangle with a potential upside breakout, testing its 200-day SMA. Despite muted momentum, the trade strategy holds.
Our profit target remains $651.00 with a stop-loss set at $534.00. |
The stock is sustaining an uptrend with supportive AI forecasts, trading above its 200-day SMA. Upside momentum supports the strategy.
Our profit target is $30.00 with a trailing stop set at $27.00. |
The stock price is holding near historically active ranges, remaining just above its 200-day SMA. Fading upside momentum poses concern, yet the strategy holds.
Our profit target stays $11.50 with a stop-loss set at $8.50. |
| Time to exit | 09 January 2026 | 07 November 2025 | 22 December 2025 |
| Share Name and Position | SYK - Buy (Continue to hold) |
MCD - Buy (Continue to hold) |
ETN - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 380.86 | 299.17 | 334.86 |
| Current Price | 369.67 | 303.89 | 374.25 |
| Movement | -2.9% | +1.6% | +11.8% |
| Comment |
Seasonal strength supports interest, though the stock has dipped below its 200-day SMA. Downside momentum pressures the trade strategy.
Our profit target remains $428.00 with a stop-loss set at $362.00. |
The stock trades within a rising channel, testing its 200-day SMA. Downside momentum remains a concern.
Our profit target is $331.00 with a trailing stop set at $291.00. |
The stock appears to be forming wave B within the Elliott Wave framework, remaining above its 200-day SMA. Muted upside momentum still supports the trade strategy.
Our profit target is $395.00 with a trailing stop set at $350.00. |
| Time to exit | 28 October 2025 | 01 October 2025 | 28 April 2026 |
| Share Name and Position | COST - Stop-loss (Close the position) |
BMY - Stop-loss (Close the position) |
|---|---|---|
| Entry | 979.25 | 48.34 |
| Current Price | 915.95 | 45.02 |
| Movement | -6.5% | -6.9% |
| Comment | <The stock triggered its stop-loss, leading us to close the position. Persistent downside momentum raises concern about the risk of further weakness. | <The stock triggered its stop-loss, prompting us to exit the position. Weakening upside momentum signalled fading buyer appetite, reinforcing the decision to close. |
| Time to exit | 10 December 2025 | 12 November 2025 |
FNB Stockbroking and Portfolio Management (Pty) Ltd, a subsidiary of FirstRand Bank Limited, an authorised Financial Services Provider and authorised user of the JSE limited (Reg no: 1996/011732/07). This Publication note is issued by FNB Stockbroking and Portfolio Management (Pty) Ltd for the information of clients only and should not be produced in whole or part without prior permission. Although FNB Stockbroking and Portfolio Management (Pty) Ltd is an Authorised Financial Services Provider, any opinions and/or analysis contained in this Publication are for informational purposes only and should not be considered advice, including but not limited to financial, legal or tax advice, or a recommendation to invest in any security or to adopt any investment strategy. The information contained herein has been obtained from sources/persons which we believe to be reliable but is not guaranteed for correctness, completeness or otherwise and we do not assume liability for loss arising from errors in the information or that may be suffered from using or relying on the information contained herein irrespective of whether there has been any negligence by us, our affiliates or any other employees of us, and whether such losses be direct or consequential. As market and economic conditions are subject to rapid change, any comments, opinions, and analysis is rendered as of the date of publishing and may change without notice. Such changes may have a material impact on the outcome of any investment. Securities involve a degree of risk and are volatile instruments. Past performance is not indicative of future performances. Securities or financial instruments mentioned in the Publication note may not be suitable for all investors and FNB Stockbroking and Portfolio Management (Pty) Ltd has bares no responsibility whatsoever arising from or as a consequence hereof. The material is not intended as a complete analysis of every material fact regarding any share, instrument, sector, region, market, country, investment, or strategy. The recipient of this Publication must make their own investment decision and is advised to contact his relationship manager for a personal financial analysis prior to making any investment decisions. Copyright 2018 by FNB Stockbroking and Portfolio Management (Pty) Ltd.
