Citigroup assumes coverage on ADT

NEW YORK—Investment analysts at Citigroup began coverage on shares of ADT in a note issued on Monday to investors, according to multiple reports. The firm set a “buy” rating and a $48.00 price target on the stock.

The analysts had to untangle “complex accounting” and adjust cash flows to estimate steady-state free cash flow. They estimated the fair value to be about $42 per share, with potentially hidden tax assets adding another $6.

ADT shares opened at $41.88 on Monday. ADT's has a one-year low of $35.38 and a one-year high of $42.58.