Imperial Capital Upgrades Tyco International to “Outperform” (TYC)
Imperial Capital analysts upgraded Tyco International Ltd. (TYC) on Thursday, as they expect the electronic security and alarm systems maker’s management to improve revenues and margins.
The analysts upgraded TYC from “In-Line” to “Outperform” with a price target of $37. This price target suggests a 11% upside to Wednesday’s closing price of $33.39.
Imperial Capital analyst Jeff Kessler commented, “We view Tyco as a margin expansion story, particularly given management’s focus towards enhancing service based revenues and their seriousness towards being selective about what jobs they accept.”
He went on to add, “A majority (55.4%) of the FY13 EPS is forecasted to be achieved in the 2H13. We believe our exclusive checks with large Tyco end users shows a company extremely well positioned against its competitors for years to come, not just via margin expansion, but through longterm, sticky, and recurring revenue based-relationships.”
Tyco shares were down 41 cents, or -1.23%, during trading on Thursday. The stock is up +12.75% year-to-date.
The Bottom Line
Shares of Tyco (TYC) have a dividend yield of 1.94% based on Thursday’s intraday trading price of $33.01 and the company’s annualized dividend payout of 64 cents per share.
Tyco International Ltd. (TYC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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