UPDATE: Stifel Nicolaus Initiates ADT Corporation at Buy on Spin-Off Opportunities
Stifel Nicolaus initiated coverage on ADT Corporation (NYSE: ADT) with a Buy rating and a $56 price target.
Stifel Nicolaus noted, "We believe the recent spin-off from Tyco should position ADT to better capitalize on the potentially improving industry growth trends, and also gives the company more flexibility to pursue M&A and leverage the balance sheet. Over the next several years we expect a modest acceleration in ADT's RMR growth and an improvement in SSFCF as higher value subscribers become a larger portion of the base. Additionally, we would not be surprised if M&A augmented organic growth, and if management “tweaked” the capital structure further."
ADT Corporation closed at $46.75 on Monday.
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