OTIS - Otis Market Share Strategy Leveling Playing Field Schindler Resilient On Demographics And End-Markets
By Alessandro Orsini
Schindler (SHNDY) has seen slowdowns in revenue growth as Otis (OTIS) transforms from being United Technologies' (UTX) cash cow to becoming an even more price aggressive independent elevator company. Although this continued strategic shift towards market share gains over margins by Otis is going to mean more pressure on Schindler's market share, this impact seems to already be priced in, where members of this increasingly uniform oligopoly are valued at the same levels. With very resilient demographic trends in Europe, where Schindler leads, and social distancing supporting non-residential income, we think