RBC Capital Assunes ARRIS Group (ARRS) at Outperform

RBC Capital assumes coverage on ARRIS Group (NASDAQ: ARRS) with a Outperform rating and a price target of $29.00.

Analyst Mitch Steves commented, "After the completed acquisition of Pace, we note that Arris offers the following key assets to investors: 1) market share leadership in set-top-boxes at ~28%; 2) opex synergies from Pace integration; 3) upside potential from DOCSIS 3.1 release; 4) stable capital allocation with $300M share repurchase announcement; and 5) attractive valuation levels. Importantly, we view the Pace transaction as an operational story rather than a growth story, and note that ~$0.60-$0.65 of accretion could be seen even if Pace revenues decline -5% y/y. Net Net: Given the company’s historical ability to execute transactions (Motorola Home example), we think operational performance will remain solid through CY16."

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 $21.62 today.

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