We are initiating coverage on Tyco International (TYC)
shares with an Outperform rating and $36 target

The company’s third-quarter results benefited
from the improvement in key metrics like account
growth, average revenue per user and the
disconnect rate, which helped sustain recurring

Tyco is increasing capital
expenditure on Research & Development at its two
new centers in Shanghai and Bangalore, which are
focused on developing products tailored to
respective local markets. The company is
aggressively pursuing its restructuring program
and expects to realize tangible benefits in 2010.Zacks Investment Research