Johnson Controls ADT sale process not surprising, says Barclays

Barclays says that according to a Bloomberg, Johnson Controls is starting the sale process for its ADT Alarms business. The news is not a surprise, as the company highlighted on the Q3 earnings call that 10% of sales of the go-forward business is “non-core,” and ADT Alarms is likely a part of this, the analyst tells investors in a research note. The firm says that while the press report highlights ADT Alarms could be worth $2B, it is not clear how much of the Indirect F&S business comprises ADT Alarms. Barclays does not see a major impact for the shares and keeps an Equal Weight rating on Johnson Controls with a $62 price target