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Connected Smart Home Devices And AI Will Ensure Future Stability

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ADT
AnalystConsensusTarget
Not Invested
Published 28 Aug 2024

Update shared on27 Aug 2025

Fair value Increased 2.13%
Previous
AnalystConsensusTarget's Fair Value
US$9.58
8.6% undervalued intrinsic discount
27 Aug
US$8.76
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1Y
19.0%
7D
0.5%

Analysts have raised their price target for ADT from $9.38 to $9.58, citing increased investor interest from decreased private equity ownership, strong Q2 results, and robust free cash flow.


Analyst Commentary


  • Decreased private equity ownership is drawing increased investor attention.
  • Further sales by private equity holders are viewed as potential positive catalysts.
  • Strong Q2 revenue performance contributed to improved analyst sentiment.
  • Robust free cash flow generation in the latest quarter supported upward price target revisions.
  • Ongoing operational execution is bolstering analyst confidence in the company's outlook.

What's in the News


  • Apple is planning a major push into AI-powered home security products, including new cameras and smart-home devices, which may intensify competition for ADT and other players in the space (Bloomberg).
  • ADT issued fiscal 2025 revenue guidance, projecting total revenue between $5,025 million and $5,225 million (Key Developments).
  • The company completed a follow-on equity offering, issuing 71 million shares at $8.31 per share and raising approximately $590 million (Key Developments).
  • ADT has repurchased a total of 51.8 million shares (5.95% of shares outstanding) for $404.7 million under its ongoing share buyback program, as of July 22, 2025 (Key Developments).
  • The most recent buyback tranche saw ADT repurchase 13.8 million shares (1.65% of shares outstanding) for $112.3 million between April and July 2025 (Key Developments).

Valuation Changes


Summary of Valuation Changes for ADT

  • The Consensus Analyst Price Target has risen slightly from $9.38 to $9.58.
  • The Future P/E for ADT has risen slightly from 9.46x to 9.66x.
  • The Consensus Revenue Growth forecasts for ADT remained effectively unchanged, moving only marginally from 3.8% per annum to 3.9% per annum.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.