UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Tyco International

In a report published Wednesday, Citigroup reiterated its Neutral rating on Tyco International Ltd. TYC, and raised its price target from $58.00 to $61.00. Citigroup noted, “CEO Ed Breen and team have kept Tyco securely on-track for the September break-up without losing any operating momentum, as evidenced by solid F3Q12 results: organic revs of 5%, orders up 8%, and EBIT margins up 190 bps. These results were welcomed news for investors, sending the stock up 2.2% on July 31. Highlights of the business segments included: ADT's Pulse had a take rate of 39% up from 35% in F2Q12 and 19% in F3Q11 among residential customers; Flow's late-cycle is ramping and gaining operating leverage; and Fire & Security posted 10% organic growth in product revenues. The next key milestones will be the Sept 14 shareholder vote and Sept 18 spinout analyst meetings. We are increasing our F2012 EPS estimate to $3.75, consistent with the directional guidance of ‘nicely ahead' of $3.65.” Tyco International Ltd. closed on Tuesday at $54.94.