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UPDATE: Citigroup Initiates ADT Corporation at Buy on Valuation

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Citigroup initiated coverage on ADT Corporation (NYSE: ADT) with a Buy rating and a $48 price target.

Citigroup noted, "We unwound the complex accounting and adjusted cash flows to estimate steady-state free cash flow. ADT currently trading at just 8.7x fully taxed FCF. We think 10x is closer to fair value, or about $42 a share. Value of NOLs and potentially hidden tax assets adds $6 a share, bringing fair value to $48."

ADT Corporation closed at $41.28 on Friday.

Latest Ratings for ADT

DateFirmActionFromTo
Apr 2018BarclaysMaintainsOverweightOverweight
Mar 2018Morgan StanleyMaintainsOverweightOverweight
Feb 2018Bank of AmericaInitiates Coverage OnBuy

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Posted-In: CitigroupAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

 

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