Market Overview

CommScope: A Wallet-Share Gainer At An Attractive Entry Point

CommScope: A Wallet-Share Gainer At An Attractive Entry Point

Morgan Stanley said in a note Thursday Commscope Holding Company Inc (NASDAQ: COMM) is positioned to be a wallet-share gainer, as carriers build more efficient networks, outweighing concerns over near-term volatility or elongation of FTTH builds.

The firm believes an attractive entry point is created by market overreaction on the length of disruption. Consequently, the firm upgraded shares of CommScope from Equal Weight to Overweight but maintained its price target at $38.

At the time of writing, CommScope shares were rallying 0.91 percent to $33.15.

Analysts Meta Marshall, James Faucette and Yuuji Anderson said they remain believers that longer-term tailwinds — such as a need for more efficient networks, increasing need for backhaul, ability to capitalize on technology transitions and flexibility of cash generation — remain more powerful and beneficial to the company than the near-term headwinds.

The near-term headwinds discussed by the firm include pauses in investment in the FTTH markets, M&A disruption and international market weakness.

See also: Making A Call With Telecom ETFs

Morgan Stanley believes the 8-percent top-line and 19-percent bottom-line cut CommScope took to its 2017 expectations at its second-quarter results represents a realistic outlook for 2017. The firm sees chance for more recovery in 2018 than built into current expectations as M&A transactions close and FirstNet projects begin.

"We believe it will take into the beginning of '18 to start seeing more meaningful upside to current expectations that could lead to appreciation to our $38 PT," the firm concluded.

Image Credit: By CommScope (Flickr: Mobile World Congress 2012) [CC BY 2.0 (], via Wikimedia Commons

Latest Ratings for COMM

Sep 2020Deutsche BankInitiates Coverage OnHold
Aug 2020Credit SuisseMaintainsOutperform
Jul 2020Wolfe ResearchInitiates Coverage OnOutperform

View More Analyst Ratings for COMM
View the Latest Analyst Ratings


Related Articles (COMM)

View Comments and Join the Discussion!

Posted-In: James Faucette and Yuuji Anderson Morgan Stanley - Meta MarshallAnalyst Color Long Ideas Upgrades Analyst Ratings Tech Trading Ideas Best of Benzinga

Latest Ratings

GRMNB of A SecuritiesUpgrades120.0
ZENCanaccord GenuityMaintains130.0
SNNCanaccord GenuityMaintains48.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at