CommScope Holding (COMM – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Tim Savageaux from Northland Securities remains neutral on the stock and has a $3.00 price target.
Tim Savageaux, in his assessment, has assigned a Buy rating to the stock of CommScope Holding (COMM). His rationale is anchored on several factors, including the potential for equity value in CommScope’s assets, despite evident slowing trends in the NICS and ANS units as observed in Q3. Savageaux believes that while the expectations for asset sale proceeds are more muted than previously articulated, given the company’s bonds are discounting financial distress and a nominal equity value, there is still potential for value.
Further justifying his rating, Savageaux views the reduction in run rate Core EBITDA results/targets, from the $1.2-$1.4B range to $1.0-$1.1B, as a significant factor. However, he also points out that the unfortunate timing of trying to sell assets amid slowing demand is impacting the company. Nonetheless, if potential buyers can see through the current inventory weakness at ANS to a multiyear upgrade cycle, as indicated in VIAV’s recent report, Savageaux sees a good possibility for value realization. He also believes that the company’s strong Q3 cash generation and the valuation on trough numbers required to generate equity value seems reasonable, contributing to his decision to assign a Buy rating.
In another report released on November 2, Bank of America Securities also maintained a Buy rating on the stock with a $2.25 price target.
COMM’s price has also changed dramatically for the past six months – from $4.410 to $1.570, which is a -64.40% drop .
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CommScope Holding (COMM) Company Description:
CommScope Holding Co., Inc. engages in the provision of infrastructure solutions for communications networks. It operates through the Connectivity Solutions (CCS), and Mobility Solutions (CMS) segments. The CCS segment offers innovative fiber optic and copper cable and connectivity solutions for use in data centers and business enterprise, telecommunications, cable television, and residential broadband networks. The CMS segment includes integral building blocks for cellular base station sites and related connectivity; indoor, small cell and distributed antenna wireless systems; and wireless network backhaul planning and optimization products and services. The company was founded by Frank M. Drendel in 1976 and is headquartered in Hickory, NC.
Read More on COMM:
- CommScope reports Q3 non-GAAP EPS 13c, consensus 30c
- Commscope Holding Company Inc (COMM) Q3 Earnings Cheat Sheet
- STMicroelectronics, CommScope announce integration of PKIWorks with STM32WB
- CommScope price target lowered to $4 from $6 at Northland
- CommScope reports preliminary Q3 revenue $1.6B, consensus $1.98B
