Imperial Capital Rates Raft Of Security Companies At Mostly Outperform

A posse of companies in the home and corporate security market headed for a Las Vegas trade show next month got mostly favorable comments from an analyst Tuesday.

Imperial Capital's Jeff Kessler expects no market-moving news from the International Security Conference West slated for April 15 through April 17.

"But there are excellent demonstration booths, with knowledgeable sales people," according to Kessler, who rates the companies on his list mostly at Outperform.

Allegion PLC ALLE expects to exceed growth-rates in its local markets even as revenue falls by 3 percent to 4 percent on currency headwinds. Kessler rates the Ireland-based company at Outperform with a $66 target.

Ascent Capital Group Inc's ASCMA Monitronics alarm unit hasn't seen a slowdown despite higher competition from cable and telecommunications companies, according to Kessler. Increasing customer attrition will "revert to the mean in coming quarters," said Kessler, who rates the company at Outperform with a target of $60.

Assa Abloy AB ASAZY is spending heavily on new product development to supplement its growth strategy based on acquisitions. Its core business centered on wireless locks and identification systems is experiencing slow but steady growth, according to Kessler, who maintains an In-Line rating and $29.50 target.

Fluor Corporation FLR got hurt last year by shifting too rapidly from military to commercial markets a year ago. But Kessler said its commercial business may grow more than 20 percent for the next five years. Kessler rates the company Outperform with a $40 target.

Identiv Inc INVE has completed its 2014 goal of refocusing on cloud and mobile-based identity and authentications technologies. The company "is now better aligned to enhance its current market footprint," said Kessler, who rates the shares at Outperform with a $14 target.

Nice-Systems Ltd's NICE financial crime and compliance segment, as well as its security business, can each grow at double-digit rates, with widening profit margins, according to Kessler, who rates the company at Outperform with a $65 target.

Nortek Inc NTK is in the midst of a drive to boost efficiency which could result in significant cost savings, according to Kessler. Its "design to value" program could further increase sales and margins. Kessler rates the shares at Outperform with a $99 target.

Tyco International plc TYC, which split off its sprawling health care and electronics units in 2007, "continues to be highly selective about what jobs the company accepts," according to Kessler, who rates the company at Outperform with a $51 target.

Verint Systems Inc. VRNT continues to receive an improving stream of large orders from current and new customers in its customer care and workflow management business, according to Kessler, who maintains an Outperform rating and $70 target.

Zebra Technologies Corp. ZBRA acquisition last year of Motorola Solutions' Enterprise business could result in significant earnings acceleration over the coming quarters, said Kessler, who maintains an Outperform rating and $98 target.