Otis Worldwide Corporation (OTIS): A Bull Case Theory

Ricardo Pillai

Fri, Jun 6, 2025, 12:28 PM 3 min read

We came across a bullish thesis on Otis Worldwide Corporation (OTIS) on Librarian Capital’s Substack. In this article, we will summarize the bulls’ thesis on OTIS. Otis Worldwide Corporation (OTIS)'s share was trading at $95.16 as of 29^th May. OTIS’s trailing and forward P/E were 24.91 and 23.53 respectively according to Yahoo Finance.

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Otis Worldwide (OTIS) remains a compelling investment opportunity despite recent share price weakness, with stock trading just 3.4% above its 52-week low and flattish year-over-year.

Following Q1 2025 results, which showed modest organic EBIT growth and 4.2% EPS growth in dollar terms, the company reiterated a constructive mid-term outlook targeting over 10% EPS growth and guided for 4.5–7% growth in 2025.

Otis’s earnings profile is anchored by its resilient service segment, which contributes 87% of EBIT and remains largely insulated from macro shocks like tariffs or recessions. This structural defensiveness, often underappreciated due to its Industrial classification, provides investors with downside protection and stable cash flows. Management reaffirmed long-term confidence by raising the 2025 outlook, even after a 6.7% drop in shares on earnings day. Despite that dip, Otis remains a core holding in the “Select 15” model portfolio, having delivered a 72% gain since its July 2020 initiation and a 14.8% return since 2023 inclusion.

The stock was recently topped up, signaling conviction in the recovery and longer-term value. At a share price of $92.74, Otis offers a projected 61% total return (14.1% CAGR) through 2028, supported by a strong service mix, predictable earnings, and strategic clarity.

Investors are likely underestimating Otis’s ability to weather economic volatility, and the current price provides an attractive entry point for patient capital. With consistent execution and minimal macro exposure, Otis’s steady growth trajectory and valuation reset offer a favorable risk/reward profile for long-term investors.

Previously, we have covered Otis Worldwide Corporation (OTIS) in October 2024 wherein we summarized a bullish thesis by Brass Tacks Cap on Substack. The author highlighted the company’s dominant market position, high-margin service segment, and strong customer retention driven by reliability, brand strength, and a dense global service network. The article emphasized Otis’s attractive valuation, robust free cash flow, and long-term growth potential from urbanization, modernization demand, and operational efficiency initiatives like the “Uplift” program.