Brean Capital Sees Buying Opportunity on Arris Group

In a report published Tuesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $32.00 price target on

. In the report, Brean Capital noted, “Every time the press recycles an article on Apple TV, shares of ARRS trade off as if Apple is poised to destroy its CPE business. This time it was a WSJ report yesterday of talks between Apple and Comcast to support ‘Apple TV'. Enough with this nonsense. There is no correlation between Arris' prospects as a CPE vendor to Comcast and a deal between Apple and Comcast to support Apple TV. Comcast would not do a deal that displaces its own CPE with an Apple CE device, and Apple has no capability or intention to offer a pay-TV service that could cannibalize Comcast video business, prompting it to spend less on CPE. Rather, any deal would likely make Apple TV a peripheral to Comcast's home gateway, which in no way mitigates the CPE opportunity for Arris. As a result, we would view yesterday's sell off as an opportunity and reiterate our Buy rating and $32 price target on ARRS.” Arris Group closed on Monday at $28.08.