FCC Chairman Wheeler Exit is 'Notable Near-Term Positive' for ARRIS (ARRS) - RBC

RBC Capital analyst Mitch Steves views news that FCC Chairman Tom Wheeler's will be leaving on Outperform January 20, 2016 is a "notable near-term positive" for ARRIS Group (NASDAQ: ARRS).

Steves commented, "This afternoon FCC Chairman Tom Wheeler announced that he will be stepping down at the end of the Obama administration's term (January 20). We think this is a notable near-term positive given that Mr. Wheeler has been at the forefront of set-top box regulations. If no new regulation is passed by the time Tom Wheeler exits in early 2017, we think Arris should benefit from the removal of an "FCC overhang". Set-top box regulations have been a concern throughout CY16 and a removal as we enter the new year should benefit the company. Net/net: while there is still a short period of time to pass regulations, if no new items are passed by the time Mr. Wheeler exits, we think this will help Arris's valuation."

The analyst reiterated an Outperform rating and price target of $35 on ARRS.

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 $30.41 yesterday.

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