NEW YORK (TheStreet) -- Tyco International (TYC) had coverage initiated today with an "outperform" rating by analysts at CLSA.
Tyco opened trading at $41.56 on Thursday. The firm set a price target of $48 on the shares.
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CLSA believes that Tyco stock is in position for a turnaround after years of decline based on a multiyear volume recovery plan.
"We expect Tyco to deliver significant margin and returns expansion over the next three years. Most of this improvement will be driven by cost-cutting and productivity benefits," analysts said.
Separately, TheStreet Ratings team rates TYCO INTERNATIONAL LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TYCO INTERNATIONAL LTD (TYC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows: