Introduction
Following the initiation of our Buy rating on Kone (KNYJY) earlier this week, we continue our work on the elevator industry by reviewing Otis (OTIS), the #1 global elevator company by total sales:
Otis has been spun out of United Technologies (now Raytheon Technologies (RTX)) in March 2020. Since then, Otis shares have risen by more than 25%.
Recap of Kone Buy Case
Our investment case on Kone consists of the following:
- Most of elevator industry profits are generated by higher-margin recurring or repeat service revenues, from an ever-expanding installed base
- The