CommScope double upgraded to Buy at BofA after ‘de-facto breakup’

As previously reported, BofA analyst Tal Liani upgraded CommScope (COMM) to Buy from Underperform with a price target of $20, up from $4, following its decision to sell CCS, its flagship segment, to Amphenol (APH). CommScope has been making progress with paying down debt over the past few quarters and the CCS sale is another step in the company’s breakup, designed to eliminate the risk of default and expose the sum-of-parts value, the analyst tells investors. The firm arrives at its new price target assuming a “conservative” valuation on a pro-forma basis ex-CCS for the remaining Ruckus and ANS segments, the analyst says.