UPDATE: Credit Suisse Upgrades Tyco International to Outperform

Credit Suisse raises its rating on Tyco International TYC to Outperform from Neutral and increases its price target to $60 from $49 ahead of the company's upcoming split, which should unlock value once it occurs. Credit Suisse says, "Detailed ADT analysis suggests value can still be unlocked at spin: We think that its attrition rates, cash generation and margin profile suggest that ADT deserves to trade at least in-line with other subscriber-based business models, and the financial information in the filings will help to illustrate this. Applying peer EV/EBITDA multiples of 8.2x to Commercial F&S and EV/EBITDA multiples of 9.7x to Flow implies ADT is being valued at just 4.1x EV/ EBITDA, against cable companies trading at 6.7x. Each 1ppt increase on the EV/EBITDA multiple for ADT adds ~$3 per share to TYC's fair value in our SOTP analysis." TYC closed at $51.15 a share on Friday.