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UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on ADT Corporation

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In a report published Monday, Credit Suisse Group reiterated its Outperform rating on ADT Corporation (NYSE: ADT), and raised its price target from $50.00 to $54.00.

Credit Suisse noted, “Some investors think they "missed" the chance to own ADT. We disagree, and see upside to the mid/high $50's over the next 12 months. TP raised to $54 (from $50). We think ADT's M&A spend will exceed their budgeted $150mn in 2013 and drive revenue and earnings growth above current market expectations. The fragmented security monitoring industry is filled with potential targets for ADT and given most industry competitors operate near identical business models, most M&A should offer significant cost synergies and earnings accretion. An additional half turn of EBITDA leverage to ADT's current targets would give ADT $700mn to spend on M&A; this could mean $175m in incremental EBITDA before synergies (10%+ accretive).”

ADT Corporation closed on Friday at $46.84.

Latest Ratings for ADT

DateFirmActionFromTo
Apr 2015CitigroupDowngradesBuyNeutral
Feb 2015OppenheimerUpgradesMarket PerformOutperform
Jan 2015Morgan StanleyDowngradesUnderweight

View More Analyst Ratings for ADT
View the Latest Analyst Ratings

Posted-In: Credit Suisse GroupAnalyst Color Price Target Analyst Ratings

 

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