ADT's (ADT) monitoring and related services growth would remain "defensive" amid an economic crisis, but its installation revenues are expected to sustain "robust" growth in the first quarter due to sales processes optimization and its go-to-market strategy, RBC Capital Markets said Sunday in a research note.

The firm noted that the security company "is focused on optimizing its sales process and go-to-market approaches, including optimizing the "knobs and dials" to find the right offer, pricing, and financing options for various customer segments and sales channels." Taking this into account, the company's dealer partners and new sales channels like State Farm are expected to experience steady progress. Its ADT+ platform, launched in fiscal 2024, is also expected to expand, the firm said in the note.

RBC expects the company's key performance metrics, including gross recurring monthly revenue addition and retention, to remain stable.

The company is also expected to see "solid" free cash flow due to operating efficiency and cost discipline, which it could use for acquiring dealer accounts and opportunistic share repurchases.

RBC expects the company to reaffirm its fiscal 2025 guidance for total revenue of $5.03 billion to $5.23 billion and for adjusted earnings per share of $0.77 to $0.85.

RBC's rating on ADT is sector perform, with a price target of $9.00.

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