UPDATE: Citigroup Reduces PT to $28 on Tyco International on Increased Cyclicality

Citigroup reiterated its Neutral rating on Tyco International

and reduced its price target from $28.49 to $28. Citigroup noted, "The bull case hinges on 270-370 bps of operating margin upside by 2015 and a potential takeout scenario, given consolidation trends in the building services sector. We believe the management team is deep and capable of delivering on margin improvements. We are maintaining our Neutral rating and adjusting our price target to $28.Our target FY13 P/E of 15.4x implies a stock price of $28 per share, or 2% upside to its current price. Our valuation is based on a relative P/E range of (15%) to +15%, driven by its increased cyclicality and pure-play composition." Tyco International closed at $27.41 on Monday.