Resideo(US:REZI) Yahoo Finance·2025-12-10 16:29Company Overview - Resideo Technologies Inc. (NYSE:REZI) is recognized as one of the best industrial stocks to buy, holding a consensus Moderate Buy rating with an average target price of $44, indicating a potential upside of 30.45% [1] - The company specializes in smart home technology, including thermostats, smoke detectors, security systems, and water management, and operates ADI Global Distribution, a major wholesale distributor of security and low-voltage products [5] Product Launch - On December 3, Resideo launched the Honeywell Home X8S Smart Thermostat, priced at $219.99, featuring live video streaming from compatible doorbell cameras and monitoring capabilities for indoor air quality [2] Strategic Developments - At the Baird Global Industrial Conference on November 12, Resideo's CFO announced plans to separate the Products and Solutions unit from the ADI distribution business to provide investors with clearer operational insights [3] - The company is currently facing short-term pressures from a new ERP system at ADI, which has negatively impacted EBITDA by approximately $15 million in Q3 and is expected to do the same in Q4, alongside a decline in HVAC-related air product sales [3] Financial Performance - Resideo reported $7.5 billion in revenue and a 10.5% adjusted EBITDA margin over the past year, despite the challenges faced [3] Future Outlook - Leadership remains optimistic about growth in non-HVAC products, the launch of the Elite Pro thermostat to compete with Nest and Ecobee, and improved margins following the Snap One deal [4] - The company anticipates mid-single-digit revenue growth and better margins in the coming years, supported by business separation, supply chain improvements, new product launches, and a strong balance sheet [4]