In a report published Friday, Imperial Capital analyst Jeff Kessler reiterated an Outperform rating on Tyco International Ltd. (NYSE: TYC), and raised the price target from $47.00 to $51.00.
In the report, Imperial Capital noted, “We are maintaining our Outperform rating and raising our one-year price target to $51 from $47, about 12% above the recent share price. Management continues to focus on amplifying service-based revenues, engaging client management to focus on business process enhancement, and growing the percentage of higher-margin service revenues in the total mix.
"Management appears to be focused on being selective about what jobs the company accepts, beginning with its North American Systems Installation & Services (NA I&S) division, in our view. As a result of company's focus on growing the percentage of higher-margin service revenues, we are raising our FY14E EPS to $1.97 from $1.92, and our FY15E EPS to $2.41 from $2.27.”
Tyco International Ltd. closed on Thursday at $45.63.
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