UPDATE: Citigroup Initiates ADT Corporation at Buy on Valuation
Citigroup initiated coverage on ADT Corporation (NYSE: ADT) with a Buy rating and a $48 price target.
Citigroup noted, "We unwound the complex accounting and adjusted cash flows to estimate steady-state free cash flow. ADT currently trading at just 8.7x fully taxed FCF. We think 10x is closer to fair value, or about $42 a share. Value of NOLs and potentially hidden tax assets adds $6 a share, bringing fair value to $48."
ADT Corporation closed at $41.28 on Friday.
Latest Ratings for ADT
|Apr 2016||Argus Research||Downgrades||Hold||Sell|
|Apr 2016||Credit Suisse||Downgrades||Outperform||Neutral|
|Feb 2016||Imperial Capital||Downgrades||Outperform||In-Line|
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