Morgan Stanley analyst Toni Kaplan maintained a Hold rating on Adt (ADT – Research Report) today and set a price target of $9.00.
Toni Kaplan has given his Hold rating due to a combination of factors impacting ADT’s financial performance and future outlook. While the company reported revenue growth that surpassed expectations, the adjusted EBITDA fell short of estimates, indicating some underlying challenges. The revenue increase was driven by record-level recurring monthly revenue and improved customer retention, yet the EBITDA margins were affected by investments in innovation and long-term strategies.
Additionally, although the 2025 guidance suggests significant revenue and free cash flow growth, the adjusted EBITDA margin guidance remains below expectations. The company’s focus on efficiency, cost control, and customer service improvements are positive, but the impact of tariffs and increased tax obligations in 2025 present potential headwinds. The recent share repurchase program and the current trading yield are viewed as fair, supporting the decision to maintain a Hold rating.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $9.00 price target.