Nomura Securities Maintains a 'Neutral' on Tyco International (TYC); PNR) Deal Offers Cost & Tax Synergies

Nomura Securities maintains a 'Neutral' on Tyco International (NYSE: TYC) price target of $57.00.

Analyst, Shannon O'Callaghan, said, "Pentair (NYSE: PNR) deal offers cost & tax synergies, but the flow businesses are quite different. Given Tyco’s Swiss tax base and merger cost synergies, the $0.40 of 2013 EPS accretion from the deal seems to be low hanging fruit. Strategic and selling benefits are less clear as these are different flow businesses, and could take some time. We estimate that $0.40 of expected accretion in 2013 implies a benefit of $1.25 to TYC’s share price. Targets of $250M in run-rate synergies and $5 of earnings power in 2015 offer potential for upside but will depend on execution post close. 2012E / 2013E EPS from $3.55 / $4.05 to $3.60 / $4.05 vs. Street $3.64 / $4.14, respectively."

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 $55.81 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Piper Sandler Reiterates Overweight Rating on Estee Lauder (EL), 'F4Q26 Preview'
• SanDisk upgraded at JPMorgan after investor day; shares climb