ARRIS Group (ARRS): FCC Proposal Passing Will Be A Negative Catalyst - Needham

September 12, 2016 8:38 AM EDT
Get Alerts ARRS Hot Sheet
Price: $29.33 +0.20%

Rating Summary:
    13 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company analyst, Richard Valera, reiterated his Buy rating on shares of ARRIS Group (NASDAQ: ARRS) after FCC Chairman Tom Wheeler presented a revamped version of his proposal seeking to "open up" the video set top market to new competition. The new "App-based" proposal involves forcing operators to enable hardware-independent linear video service by offering an App that provides access to the operators' video stream. Assuming this proposal is passed on its Sept. 29 vote, the analyst would only spin it as \a win for consumers and negative for providers of traditional video STBs like ARRS.

That said, given the 2-year implementation timeline, numerous technical and potential legal obstacles that would remain to implement it, the poor track record of prior such initiatives and, finally, the still modest modest valuation of ARRS he maintains his Buy rating.

price target of $32.00

For an analyst ratings summary and ratings history on ARRIS Group click here. For more ratings news on ARRIS Group click here.

Shares of ARRIS Group closed at $26.73 yesterday.

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