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Oppenheimer Thinks Resideo Technologies Inc’s Stock is Going to Recover


In a report released yesterday, Ian Zaffino from Oppenheimer maintained a Buy rating on Resideo Technologies Inc (REZI), with a price target of $35. The company’s shares closed on Tuesday at $20.40, close to its 52-week low of $18.77.

Zaffino wrote:

“The most topical investor questions were: the environmental liability, a housing slowdown, capital allocation, the business rationale for ADI ownership, and the positioning/competiveness of the Products portfolio. Management suggested EBITDA could be 50% higher by 2023, as top line grows ~4% and margins accrete slightly through higher recurring revenues and a greater mix of Products sales (vs. Distribution). As one-timers roll off, 2021 FCF could be ~$2.44/share with an attractive FCF/EBITDA conversion ratio of ~53%.”

According to TipRanks.com, Zaffino is a 1-star analyst with an average return of -0.4% and a 48.9% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Wyndham Hotels & Resorts Inc, and Wyndham Destinations Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Resideo Technologies Inc with a $35 average price target.

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The company has a one-year high of $32.55 and a one-year low of $18.77. Currently, Resideo Technologies Inc has an average volume of 4.51M.

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Resideo Technologies, Inc. provides household security solutions. It distributes security and low voltage products. The company is headquartered in Morris Plains, NJ.