Nomura Securities Maintains a 'Neutral' on Tyco International (TYC); Comments on Spinoff

Nomura Securities maintains a 'Neutral' on Tyco International (NYSE: TYC) price target of $44.00.

Nomura analyst, Shannon O’Callaghan, says, "Tyco announced yesterday that it plans to separate into three separate companies (again), which is something that has made sense for a while in our view and still does. The separation is expected to take 12 months to complete. If a deal were to happen today, then deal premiums could get us to $55+ but the recent decision process suggests we may have to see the spin process through first. We like the separation but we are not keen about waiting on deals as a potential catalyst. Our $44 price target is based on 13x our 2012 EPS estimate of $3.35, which seems about right to us for now given hopes but not facts around deals."

For more ratings news on Tyco International click here and for the rating history of Tyco International click here.

Shares of Tyco International closed at $44.75 yesterday.

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