UPDATE: Deutsche Bank Upgrades ADT (ADT) to Buy
- S&P, Dow futures edge higher ahead of inflation data
- U.S. Calls for Pause of J&J (JNJ) Vaccine After Clotting Cases, Including One Death
- Biggest SPAC Deal Ever: Grab To Go Public in a $40 Billion Merger With Altimeter (AGC), Backed by Fidelity and BlackRock
- Oil prices tick up after robust China data
- Bitcoin (BTC) Price Soars 5% to Fresh Record Highs Ahead of Coinbase IPO
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."
Shares of ADT closed at $7.93 yesterday.
You May Also Be Interested In
- UPDATE: Jefferies Upgrades Booking Holdings (BKNG) to Buy 'as Travel Rebounds in 2H21'
- UPDATE: Seaport Global Securities Starts AFC Gamma, Inc. (AFCG) at Buy
- Tesla (TSLA) Upgraded to 'Buy' at Canaccord Genuity and PT Raised by 155%, as it 'Holds a Several-Year Lead' in EV While Storage Business Accelerates
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!