UPDATE: Deutsche Bank Upgrades ADT (ADT) to Buy

March 11, 2021 2:30 AM EST
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Price: $9.52 --0%

Rating Summary:
    6 Buy, 5 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 12 | New: 46
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(Updated - March 11, 2021 6:36 AM EST)

Deutsche Bank analyst Kunal Madhukar upgraded ADT (NYSE: ADT) from Hold to Buy with a price target of $10.00 (from $8.00).

The analyst comments "Coming out of our annual MIT conference where we hosted the CEO and CFO at a fireside chat, we are upgrading ADT to Buy from Hold, and we are increasing our TP to $10 from $8. We had highlighted three reasons recently (link) for preferring to remain on the sidelines. Post our chat, we think 1) the ADT+Google solution, even in 2H21, could be more robust than we had initially thought especially with the software/applications that the company can add by leveraging Google's deep tech expertise in mobile, AI, and image recognition, 2) the additional supply from the competitor could still come to the market, but likely may be strategically managed to ensure trading float does not expand exponentially, and 3) while there may still be investor perception of large shareholder selling into the strength, we think the longer term upside potential could be so much larger – especially after ADT begins offering the integrated ADT+Google solution in January 2023 – that the potential upside could outweigh any short term volatility. Additionally, at our conference, Vivint management highlighted how they are leveraging their data to potentially offer home insurance and aging-in-place, and think there should be no reason that ADT+Google may not be able to develop similar initiatives."

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

Shares of ADT closed at $7.93 yesterday.


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