ADT Rating Lowered to Underweight at Morgan Stanley (ADT)

ADT (NYSE: ADT) was downgraded by equities research analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a research note issued to investors on Wednesday, reports. They currently have a $48.00 price target on the stock, down from their previous price target of $50.00.

The analysts wrote, “Our price target falls by $2 to $48, driven by slightly more conservative longer-term Pulse adoption rate and attrition forecasts, in light of our most recent Home Security survey. As such, with negative risk/reward skew, we downgrade ADT to UW. ADT has outperformed since its October spin, gaining 36% vs. 21% for the S&P500. The stock now trades just below our $48 DCF-driven target price (Ex 3) – lack of residual upside is the principal driver for our downgrade.”

ADT has been the subject of a number of other recent research reports. Analysts at Imperial Capital initiated coverage on shares of ADT in a research note to investors on Wednesday, March 20th. They set an “outperform” rating and a $54.00 price target on the stock. Separately, analysts at Argus reiterated a “hold” rating on shares of ADT in a research note to investors on Tuesday, March 19th. They now have a $48.00 price target on the stock. Finally, analysts at Barclays Capital raised their price target on shares of ADT from $45.00 to $47.00 in a research note to investors on Thursday, January 31st. They now have an “equal weight” rating on the stock.

One equities research analyst has rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and an average price target of $51.89.

Shares of ADT (NYSE: ADT) traded down 2.65% during mid-day trading on Wednesday, hitting $45.24. ADT has a one year low of $35.38 and a one year high of $50.37. The stock’s 50-day moving average is currently $48.05. The company has a market cap of $9.975 billion and a P/E ratio of 27.02.

ADT (NYSE: ADT) last announced its earnings results on Wednesday, January 30th. The company reported $0.44 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.43 by $0.01. The company had revenue of $744.00 million for the quarter, compared to the consensus estimate of $818.00 million. During the same quarter in the previous year, the company posted $0.41 earnings per share. The company’s revenue for the quarter was up 1.8% on a year-over-year basis. On average, analysts predict that ADT will post $1.79 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which is scheduled for Wednesday, May 15th. Investors of record on Wednesday, April 24th will be paid a dividend of $0.13 per share. This represents a $0.50 annualized dividend and a dividend yield of 1.08%. The ex-dividend date is Monday, April 22nd.

The ADT Corporation (NYSE: ADT) is a provider of electronic security, interactive home and business automation and related monitoring services.

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