Evercore ISI analyst Amit Daryanani reiterated an In Line rating and $20.00 price target on Vistance Networks (NASDAQ: VISN)

The analyst commented, "Last night, VISN announced the distribution of a $10/sh special cash dividend using proceeds from the sale of its CCS segment to Amphenol on January 9th. Notably, the company confirmed it will fund the dividend entirely with cash on hand rather than adding leverage, citing ongoing volatility in the debt markets. In our prior report (see here), we expected a dividend in the $10-12/sh range, with a base case of $11/sh; while the outcome came in at the lower end, we view $10/sh as reasonable given the more conservative capital structure. That said, we still expect leverage to be layered in over time, with the company likely operating in the 1.5–2.0x range longer term. With the dividend now complete, a key overhang is removed and investor focus should increasingly shift toward the earnings power and valuation of the remaining “stub” business, which continues to screen at a meaningful discount to peers on an EV/EBITDA basis (sub-5x vs. low-to-mid teens for the group). We expect visibility on the financials to improve now that the company has completed the dividend. Additionally, there has been ongoing discourse around a potential sale of the Rukus segment, which, if executed, could drive a further $5–6/sh return to shareholders."

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Shares of Vistance Networks closed at $18.60 yesterday.