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Tyco International’s Estimates Boosted at FBR Capital (TYC)

Security products and services company Tyco International Ltd. ( TYC

) saw its earnings estimates raised on Friday by analysts at FBR Capital Markets.

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.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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