Barclays Maintains an 'Equalweight' on Tyco (TYC); F4Q11: Flow Turning; Split Still LT Focus

Barclays maintains an 'Equalweight' on Tyco International (NYSE: TYC) price target raised $2 to $50.

Barclays analyst says, "TYC is known for guiding conservatively (this quarter was the company's 18th straight beat by our count). FY12 top-line guide of 4.5-5.5% organic growth seems achievable and in line with peer expectations. Commentary around Flow - orders up 14% and accelerating, 30%+ incremental margins in 2H12 - is encouraging. Flow is TYC's most cyclical business and adds greater potential for positive surprises going forward. Security and Fire will be modest growers next year and the company will continue to repurchase stock/do bolt-on deals (mostly in commercial fire & security according to management). This adds up to ~10% EPS growth in F2012 with runway into 2013 as commercial side of business starts to turn. We raise our F2012E EPS to $3.55 from $3.45."

For an analyst ratings summary and ratings history on Tyco International click here. For more ratings news on Tyco International click here.

Shares of Tyco International closed at $46.99 yesterday.

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