Our Technology analyst Ami Joseph presented our ADT Best Idea short call on Tuesday. The IPO price was cut from an expected $19 at the end of last week to $14 this morning. Since the stock listed this morning, it is down ~10%.

One of the many issues he has with the company is its standalone organic forward growth rate. Here it is.

50% Downside: ADT Named Best Idea SHORT Ahead of Its IPO - z xc

The seller is trying to imply that organic growth rates are ~7% for the industry. The sellside is modeling what they are told (3-5%). But the company has really only managed to grow 0.8% organically since FY11. 

Bloomberg ran a story on our short call earlier this week. 

**For access to our extensive institutional research on ADT email sales@hedgeye.com.

50% Downside: ADT Named Best Idea SHORT Ahead of Its IPO - adt hedgeye