Bank of America Securities analyst Tal Liani reiterated a Buy rating on CommScope Holding today and set a price target of $23.50.
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Tal Liani’s rating is based on the recent strategic shift at CommScope following the divestiture of its Connectivity and Cable Solutions segment. This move has redefined the company’s focus towards its two remaining segments: Access Network Solutions (ANS) and Ruckus, each with distinct market dynamics and growth potential. The separation of these segments allows for a sum-of-the-parts analysis, which supports an increased price objective of $23.50 per share, up from $20.
Furthermore, the valuation of CommScope’s segments suggests potential for further stock appreciation. The Ruckus segment is expected to benefit from the Wi-Fi 7 upgrade cycle, projected to drive significant revenue growth in the coming years. Similarly, ANS is poised for growth through DOCSIS 4.0 upgrades and additional revenue opportunities from software capacity licenses. The combined valuation multiples of these segments, when compared to industry peers, indicate a discount, suggesting room for upside in CommScope’s stock price.
Liani covers the Technology sector, focusing on stocks such as Ciena, CrowdStrike Holdings, and SailPoint, Inc.. According to TipRanks, Liani has an average return of 9.9% and a 59.46% success rate on recommended stocks.
In another report released on October 31, Northland Securities also maintained a Buy rating on the stock with a $25.00 price target.