JPMorgan cuts CommScope target, adds ‘Negative Catalyst Watch’

JPMorgan analyst Samik Chatterjee lowered the firm’s price target on CommScope to $6 from $9 and keeps a Neutral rating on the shares. The analyst also added a “Negative Catalyst Watch” on the shares into the upcoming earnings print. CommScope shares continue to trade at inexpensive multiples, but the high leverage associated with the company is likely to drive a significant compression in the price-to-earnings multiple for the shares, the analyst tells investors in a research note. The firm expects management to acknowledge the limited improvement in orders driving greater visibility relative to a more modest revenue and EBITDA ramp through the year than required to meet its full-year targets.