Allegion (NYSE:ALLE) shares fell more than 2% intra-day today after Barclays analysts downgraded the company to Underweight from Equalweight, reducing their price target to $116 from $122.

The analysts cited concerns over Allegion's significant exposure to the US greenfield commercial construction market, which they believe will impact the company's top-line performance. Stable trends in the institutional segment may not be sufficient to offset this impact.

Additionally, the analysts anticipate that margin tailwinds from pricing and cost initiatives will ease, and a potential residential recovery in 2025 could lead to a margin mix headwind.

The lack of secular growth drivers is expected to prevent a re-rating of Allegion's valuation multiple.