Security products and services company Tyco International Ltd. ( TYC
The firm maintained its "Outperform" rating and $48 price target on the stock, which represents a potential 30% upside to TYC's Thursday closing price of $36.97.
An FBR analyst commented, "We remain positive on Tyco shares, reflecting the company's improving business mix, high free cash flow generation through the cycle, and bottom quartile valuation versus peers. We also see upside from share repurchases and acquisitions, where we see ample flexibility in the $1.8 billion cash on balance sheet and 13% net debt to cap and maintain our Outperform rating. We are revising our 2010 estimate from $2.65 to $2.63 and maintaining our 2011/2012 estimates of $3.20/$3.50."
Tyco International shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of TYC have a dividend yield of 2.23%, based on last night's closing stock price of $36.97. The stock has technical support in the $32-$34 price area. If the shares can firm up, we see overhead resistance around the $38-$40 price levels. We would remain on the sidelines for now.
Tyco International Ltd. ( TYC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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