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UPDATE: Citigroup Reduces PT to $28 on Tyco International on Increased Cyclicality

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Citigroup reiterated its Neutral rating on Tyco International (NYSE: 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.

Latest Ratings for TYC

DateFirmActionFromTo
Sep 2014Stifel NicolausInitiates Coverage onHold
Jul 2014BarclaysMaintainsOverweight
Apr 2014CitigroupMaintainsBuy

View More Analyst Ratings for TYC
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Price Target Intraday Update Analyst Ratings

 

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