J.P. Morgan Says Tyco Top Idea (TYC)

J.P. Morgan Chase & Co. is out with a research report on the electrical equipment sector, and says that Tyco TYC is a top idea in the space. It has an Overweight rating and a $30 price target on shares. In a note to clients, J.P. Morgan writes, "TYC and GE are our top long ideas; we also like IR. Into 1Q, we'd recommend owning names closer to trough and just coming off the bottom, where the earnings are less dependent on 2H global momentum for direction. We think TYC could beat and raise (with an adjustment for 1Q upside as well), a fundamental surprise that may be unexpected amid recent M&A speculation. GE is a name that could fly under the radar near term: we see upside at GECS, decent orders, and a more upbeat tone on Aviation/HC. IR is a low-expectations play where sentiment on execution is low." Shares of TYC lost 24 cents on Friday to close at $51.70, a loss of nearly 0.5%.