UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Tyco International Ltd. on In-Line F4Q13, FY2014 Guide Looks All Secure

In a report published Friday, Citigroup analyst Deane M. Dray reiterated a Neutral rating on

, and raised the price target from $36.00 to $39.00. In the report, Citigroup noted, “Neutral-rated Tyco closed out a solid first year following its three-way split in Sept-2012 with an inline F4Q and mostly as-expected FY2014 guidance. Investors liked hearing that Tyco remains securely on track for a 15% EPS CAGR and 15%-16% op margins by 2015. Having worked through most of the growing pains and still hitting 13% earnings growth in 2013, we believe Tyco has several levers to drive earnings momentum in 2014 and beyond, including productivity and sourcing initiatives, lower corp expense and taxes, a strong pipeline of bolt-on M&A, and a healthy North America Security installation backlog, now with a 150 bps higher margin profile. In addition, North Am Install & Service sales are expected to return to positive organic growth in 2H14 as comps begin to ease. Initial FY2014 guidance of $2.05-$2.15 captured consensus at the high-end, but F1Q14 guidance was a touch light, due mostly to seasonality. We are maintaining our 2014 estimate of $2.15, but raise our target price to $39.” Tyco International Ltd. closed on Thursday at $37.60.