Lehman Brothers reiterates its overweight rating on Tyco (TYC).
Analyst Robert Cornell says Tyco's 8-K and 10-Q reports look good based on his first review; no major problems were found, although he says he saw numerous instances of aggressive accounting.
Cornell says he found nothing that is expected to materially affect Tyco's earnings per share and cash flow from operations for 2003 and beyond. Cornell says the SEC still is reviewing recently received documents, but given Tyco's close communication with the SEC during the process, he doesn't expect any surprises.
Bottomline: The results of Tyco's internal review represent a clean bill of health. Cornell has a $25 target, and a $1.60 2003 earnings per share estimate.