UPDATE: Rosenblatt Upgrades CommScope Holding (COMM) to Buy
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Rosenblatt analyst Ryan Koontz upgraded CommScope Holding (NASDAQ: COMM) from Neutral to Buy with a price target of $21.00.
The analyst comments "Coupled with our higher confidence in top-line growth from these programs, the spinout of the Home unit (SpinCo) to COMM shareholders should result in a much more attractive investor view of the remaining (RemainCo) COMM business (see figure 1). We estimate bottoms-up CY21/CY22 revenue growth estimates of 8.5% / 5.3% for RemainCo with steady ~40% gross margins and value RemainCo at ~9x EV/EBITDA or 2x EV/sales. Even though we are far less bullish on the prospects for SpinCo, just 0.3x CY22 EV/Sales for the unit, we value COMM with a new price target of $21."
Shares of CommScope Holding closed at $15.42 yesterday.
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