Kaufman Bros. Maintains a 'Buy' on ARRIS Group (ARRS); Comcast (CMCSK) Wireless Gateway Announcement Bodes Well For Moxi
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Price: $31.66 --0%
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
Rating Summary:
5 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
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Kaufman Bros. maintains a 'Buy' on ARRIS Group (NASDAQ: ARRS) price target of $13.00.
Kaufman analyst says, "Comcast (Nasdaq: CMCSK) gearing up for STB refresh, we believe. For years, cable home architectures were based on multiple set-top boxes (STBs) along with an E-MTA device for voice and data service. We view the integration of multiple functions into a single gateway/router product with Wi-Fi as a natural progression for MSOs to reduce the total cost of multi-device CPE to a bare minimum..."
"We think competition in the IP gateway space will likely intensify in 2012. We believe that ARRIS currently holds an early first mover advantage in the home gateway market, which will likely be challenged by Samsung, Cisco (Nasdaq: CSCO), and Pace who are in various stages of formulating their own product roadmaps, while Motorola Mobility (NYSE: MMI) (under the Google (Nasdaq: GOOG) umbrella) remains a wildcard. As competition intensifies, we believe that margins will most likely come under pressure. However, we believe that the longer ARRIS can cling onto its first mover advantage and the less fluid the competitive playing field, then the more sticky margins will be going forward. At a minimum, we do not expect an all-out CPE margin compression to occur in 2012."
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 $10.02 yesterday.
Kaufman analyst says, "Comcast (Nasdaq: CMCSK) gearing up for STB refresh, we believe. For years, cable home architectures were based on multiple set-top boxes (STBs) along with an E-MTA device for voice and data service. We view the integration of multiple functions into a single gateway/router product with Wi-Fi as a natural progression for MSOs to reduce the total cost of multi-device CPE to a bare minimum..."
"We think competition in the IP gateway space will likely intensify in 2012. We believe that ARRIS currently holds an early first mover advantage in the home gateway market, which will likely be challenged by Samsung, Cisco (Nasdaq: CSCO), and Pace who are in various stages of formulating their own product roadmaps, while Motorola Mobility (NYSE: MMI) (under the Google (Nasdaq: GOOG) umbrella) remains a wildcard. As competition intensifies, we believe that margins will most likely come under pressure. However, we believe that the longer ARRIS can cling onto its first mover advantage and the less fluid the competitive playing field, then the more sticky margins will be going forward. At a minimum, we do not expect an all-out CPE margin compression to occur in 2012."
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 $10.02 yesterday.
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