Barclays downgrades ADT stock rating on soft outlook, cuts target
#ADT stock #Barclays downgrade #Underweight rating #Price target #Fiscal 2026 guidance #Stock buyback #Free cash flow yield #Goldman Sachs
📌 Key Takeaways
- Barclays downgraded ADT stock from Equalweight to Underweight
- Price target lowered from $9.00 to $7.00
- Stock has fallen nearly 16% in the past week
- Goldman Sachs maintained a Buy rating with $10.40 target
- ADT's fourth-quarter revenue showed 5% year-over-year growth but missed expectations
📖 Full Retelling
Barclays downgraded ADT (NYSE:ADT) stock to Underweight from Equalweight and lowered its price target to $7.00 from $9.00 on March 6, 2026, citing the security company's weak quarterly performance and disappointing fiscal 2026 guidance that fails to differentiate it favorably in the current market environment. The stock has fallen nearly 16% over the past week and is currently trading at $6.74, just above its 52-week low of $6.65. Barclays noted that the market is currently separating stocks into clear winners and losers, and ADT's flat revenues and earnings per share projections for the year do not position it favorably among competitors. The firm indicated that ADT's new long-term strategy requires a 'show-me' approach before investors can regain confidence. Despite the negative assessment, InvestingPro analysis suggests ADT appears undervalued at current levels based on its Fair Value assessment, highlighting that management has been aggressively buying back shares and the stock trades at a strong free cash flow yield. In contrast, Goldman Sachs maintained a Buy rating on ADT stock with a price target of $10.40, noting an increase in revenue payback to 2.3x from 2.2x in the prior year.
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Stock Ratings, Market Performance, Company Strategy
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Share repurchase
Reacquisition by a company of its own shares
Share repurchase, also known as share buyback or stock buyback, is the reacquisition by a company of its own shares. It is an alternative way of returning money to shareholders than dividends. After a repurchase event, the company's stock price is now proportionally higher because of the smaller num...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Oil holds steady after 5-day winning streak; set for weekly surge on Iran conflict Trump replaces Homeland Security chief Kristi Noem Gold rises but heads for weekly loss as firm dollar dulls haven appeal Wall Street ends lower on escalating Iran conflict, report of AI export curbs (South Africa Philippines Nigeria) Barclays downgrades ADT stock rating on soft outlook, cuts target By Analyst Ratings Published 03/06/2026, 03:47 AM Barclays downgrades ADT stock rating on soft outlook, cuts target 0 ADT -1.46% Investing.com - Barclays downgraded ADT (NYSE:ADT) stock to Underweight from Equalweight and lowered its price target to $7.00 from $9.00. The stock has fallen nearly 16% over the past week and is now trading at $6.74, just above its 52-week low of $6.65. The downgrade follows a weak quarter and disappointing fiscal 2026 guidance from the security company. Barclays said flat revenues and earnings per share for the year do not differentiate ADT favorably in the current market environment. The firm said the new long-term strategy laid out by ADT requires a "show-me" approach. Barclays noted that stocks are being separated into winners and losers in the current market.Despite the downgrade, InvestingPro analysis suggests ADT appears undervalued at current levels based on its Fair Value assessment. The platform highlights that management has been aggressively buying back shares and the stock trades at a strong free cash flow yield—two of over 10 additional InvestingPro Tips available for deeper analysis. The main risk to the downgrade call is renewed market appetite for value free cash flow yields and stock support from the company’s buyback program announced during its fourth-quarter 2025 earnings call. Barclays lowered its price target by reducing its multiple to 5x from 5.5x, which represents ADT’s three-year average multiple, on unchanged fiscal 2026 EBITDA minus stock-based compensation of $2,609 million....
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