Seaport Research initiated coverage of Resideo Technologies with a Buy rating and a $55 price target, implying a 76% upside from current levels. The firm highlighted two key growth drivers: a renegotiated agreement with its parent company expected to generate $140 million in additional annual cash flow, and a planned spin-off of its lower-margin distribution business. Resideo reaffirmed its fiscal 2026 outlook and provided second-quarter guidance, with net revenue expected between $1.916 billion and $1.940 billion, adjusted EBITDA between $216 million and $230 million, and fully diluted EPS between $0.71 and $0.75. CFO Michael Carlet noted anticipated higher costs in areas like fuel and freight, with pricing actions starting in the second quarter to mitigate these increases, though there could be a slight gross margin headwind.
Resideo Technologies IncSeaport Research initiated coverage with a Buy rating and $55 price target, implying 76% upside.