RBC Capital Remains Bullish on ARRIS Group (ARRS) After Meeting with Management
- Wall Street gains, helped by oil, economic data
- Twitter (TWTR) 'Takeover Money' Moves On as 'Trump Money' Moves In
- Buy Any Seasonal Market Weakness Ahead of Year End Rally - Oppenheimer (SPY)
- Unusual 11 Mid-Day Movers 12/5: (NVCN) (BCEI) (MEMP) Higher; (GTXI) (CERC) (HDSN) Lower
- Oil hits 16-month high in buying rush after OPEC agreement
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
RBC Capital reiterated an Outperform rating and $33.00 price target on ARRIS Group (NASDAQ: ARRS) after meeting with management and investors.
Analyst Mitch Steves commented, "We held investor meetings with Bob Puccini (VP of IR) and note the following key takeaways: 1) we think the line card upgrade is slated to impact Mar-qtr - gross margin accretive, 2) when the Company reaches $1B in cash (currently at $900M) they will look for M&A or buybacks, 3) COGs savings from Pace have been minimal at this point and will be seen in CY17, 4) while set-top boxes are lower than corporate operating margins we think some modems may be accretive (higher end new modems) and 5) we get the sense that investors would view an N&C transaction as a positive use of cash. Net Net: we came away incrementally positive on the Arris outlook and believe line cards, docsis 3.1 and capital allocation will be the key talking points over the next 6 months."
Shares of ARRIS Group closed at $28.90 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Goldman Sachs Downgrades Marvell (MRVL) to Sell
- Cowen Reiterates Outperform on Costco Wholesale (COST) Ahead of 4Q
- Crocs (CROX) PT, Estimates Trimmed at Susquehanna
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesRBC Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!