CommScope placed on ‘Positive Catalyst Watch’ at JPMorgan

JPMorgan placed a "Positive Catalyst Watch" on Neutral-rated CommScope. The upcoming earnings print is expected to be a positive catalyst in reassuring investors that CommScope remains on track with its full-year 2023 EBITDA objectives, despite increasing macro headwinds, by pulling cost levers, the analyst tells investors in a research note. The firm keeps a Neutral rating given its longer-term view that CommScope’s technology portfolio has yet to be transformed to be industry leading. However, it believes the stock’s current valuation implies that investors are pricing in CommScope missing 2023 EBITDA targets or hitting only the low-end of it, which it says would change with a reiteration of the full-year guide.