Northland analyst Tim Savageaux lowered the firm’s price target on CommScope to $4 from $6 and keeps an Outperform rating on the shares following the company’s “oddly timed” Q3 downside pre-announcement on Monday morning. In addition to continued Tier 1 carrier spending weakness impacting fiber and wireless connectivity, inventory issues in its ANS/Cable Networking unit drove downside and the weaker ANS results represent a risk to the firm’s asset sale thesis given this is one of the units the firm believes is likely for sale, the analyst tells investors.
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- CommScope working on asset sales to pay down debt, Bloomberg says
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