Nomura Securities Maintains a 'Neutral' on Tyco International (TYC); Adjusting Estimates After Q3 Report
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Price: $45.59 --0%
Rating Summary:
9 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Tyco International (NYSE: TYC) price target of $56.00.
Analyst, Shannon O'Callaghan, said, "Tyco’s fiscal 3Q earnings were once again a beat (+0.08 vs our estimate), with corporate and tax (+0.06) a primary driver but also a solid $0.03 beat at F&S. In our view, free cash flow is not tracking as attractively as earnings owing to a 34% increase in capex in the quarter and continued elevated dealer spending. We think that ADT is the biggest area of this spending and that, with the uptick in attrition, more spending is required to grow the account base. Ex-items, we estimate free cash flow conversion will approximate 85% again this year, which is less than the 100% conversion generally expected in our sector. We raise 12/13 EPS estimates to $3.74/$4.05, driven by lower corporate/tax."
3Q12E EPS from $0.93 to $1.01; 4Q12E EPS from $1.02 to $1.03; F12E EPS from $3.65 to $3.74; F13E EPS from $4.00 to $4.05.
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 $54.94 yesterday.
Analyst, Shannon O'Callaghan, said, "Tyco’s fiscal 3Q earnings were once again a beat (+0.08 vs our estimate), with corporate and tax (+0.06) a primary driver but also a solid $0.03 beat at F&S. In our view, free cash flow is not tracking as attractively as earnings owing to a 34% increase in capex in the quarter and continued elevated dealer spending. We think that ADT is the biggest area of this spending and that, with the uptick in attrition, more spending is required to grow the account base. Ex-items, we estimate free cash flow conversion will approximate 85% again this year, which is less than the 100% conversion generally expected in our sector. We raise 12/13 EPS estimates to $3.74/$4.05, driven by lower corporate/tax."
3Q12E EPS from $0.93 to $1.01; 4Q12E EPS from $1.02 to $1.03; F12E EPS from $3.65 to $3.74; F13E EPS from $4.00 to $4.05.
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 $54.94 yesterday.
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