CommScope Holding Co. Stock Upgraded to Buy by B of A Securities: Price Target Boosted to $20.00

B of A Securities analyst Tal Liani upgraded CommScope Holding Co (COMM) to a 'Buy' rating from 'Underperform', significantly increasing the price target from $4.00 to $20.00. The analyst's upgrade has brought attention to COMM in the market. COMM provides infrastructure solutions for communication, data center, and entertainment networks. The average target price is $11.75 with a high estimate of $20.00 and a low estimate of $4.00, indicating an 18.63% downside from the current price of $14.44.

CommScope Holding Co. Inc. (COMM) reported robust financial results for the second quarter of 2025, showcasing a significant increase in net sales and adjusted EBITDA. The company's net sales surged by 32% year-over-year to $1.388 billion, while adjusted EBITDA rose by 79% to $338 million [1].

The company's ANS segment, which provides infrastructure solutions for communication networks, saw a 65% year-over-year increase in revenue to $322 million and a 132% increase in adjusted EBITDA to $80 million. The RUCKUS segment, focused on wireless infrastructure, also performed well, with revenue up 47% to $190 million and adjusted EBITDA increasing by $51 million to $46 million [1].

Notably, CommScope announced a definitive agreement to sell its CCS business to Amphenol for $10.5 billion, which is expected to unlock equity value and return cash to shareholders. The company expects to distribute significant excess cash to shareholders as a dividend within 60 to 90 days following the closing of the CCS transaction [1].

B of A Securities analyst Tal Liani recently upgraded CommScope Holding Co. to a 'Buy' rating from 'Underperform', significantly increasing the price target from $4.00 to $20.00. The analyst's upgrade has brought attention to COMM in the market, with the average target price now at $11.75, indicating an 18.63% downside from the current price of $14.44 [2].

Despite the strong performance, CommScope faces ongoing challenges with tariffs and a high customer concentration in the ANS segment. The company has implemented strategies to mitigate tariff impacts and is monitoring customer concentration risks [1].

The positive developments in the ANS and RUCKUS segments, along with the CCS business sale, position CommScope for continued growth and shareholder value. However, investors should remain vigilant for potential risks associated with cyclical fluctuations and seasonality in the third quarter.

References:
[1] https://finance.yahoo.com/news/commscope-holding-co-inc-comm-070341000.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TX25S:0-commscope-holding-company-inc-expected-to-post-earnings-of-28-cents-a-share-earnings-preview/