The Ratings Game: Analysts are swooning over ADT — with one exception

Security monitoring company ADT Inc. is a leader in a growing sector with a strong management team and profitable business model that are not reflected in its stock price, which has been subdued since the company’s $1.6 billion initial public offering last month.

That’s the view of analysts initiating coverage of the stock Tuesday with mostly positive views of the company.

RBC Capital Markets assigned the stock an outperform rating and a $16 price target, or 27% above its current trading level. ADT ADT, -1.73% has a roughly 30% share of the residential security market, which makes it about five times the size of its nearest rival, and a leading presence in the commercial market, analyst Gary Bisbee wrote in a note.

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