UPDATE: Jefferies Initiates Coverage on Nortek with Hold Rating, $73 PT on Fair Valuation

In a report published Thursday, Jefferies analyst Philip Ng initiated coverage on Nortek NTK with a Hold rating and $73.00 price target. In the report, Jefferies noted, “While we like the management changes and operational improvements NTK is undertaking, we are initiating coverage with a Hold rating. Given the lack of liquidity in the stock, high leverage, and the shares trading only at a modest discount to the group, we believe NTK is fairly valued. That said, we have a positive bias in the name and would revisit the idea on a pullback, and when we get better clarity on the restructuring initiative.” Nortek closed on Wednesday at $68.88.