Citigroup reiterated its Neutral rating on Tyco International TYC and reduced its price target from $28.49 to $28.
Citigroup noted, "The bull case hinges on 270-370 bps of operating margin upside by 2015 and a potential takeout scenario, given consolidation trends in the building services sector. We believe the management team is deep and capable of delivering on margin improvements. We are maintaining our Neutral rating and adjusting our price target to $28.Our target FY13 P/E of 15.4x implies a stock price of $28 per share, or 2% upside to its current price. Our valuation is based on a relative P/E range of (15%) to +15%, driven by its increased cyclicality and pure-play composition."
Tyco International closed at $27.41 on Monday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in