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.
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.
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