Commscope Holding Company Coverage Initiated by Analysts at Goldman Sachs Group Inc. (COMM)
Equities research analysts at Goldman Sachs Group Inc. assumed coverage on shares of Commscope Holding Company (NASDAQ:COMM) in a research note issued to investors on Wednesday, TheFlyOnTheWall.com reports. The firm set a “buy” rating and a $19.00 price target on the stock. Goldman Sachs Group Inc.’s price objective suggests a potential upside of 12.03% from the stock’s previous close.
The analysts wrote, “We initiate coverage of CommScope with a Buy rating and a 12-month price target of $19 (12% upside). We expect CommScope’s EPS to benefit by 5-10% yoy from deleveraging alone in 2014 and 2015, which we believe positions it well to outperform in the mid- to later stages of the cycle. We see 3 key reasons to buy shares: (1) We believe CommScope will use FCF (in the mid- to high single digits as a percent of revenue) to deleverage from 4X pre-IPO to 2X in early 2016. CommScope has successfully reduced debt in the past. (2) CommScope should benefit from LTE and small-cell DAS spending. (3) Valuation is reasonable in our view at 11X normalized EPS.”
A number of other analysts have also recently weighed in on COMM. Analysts at Deutsche Bank initiated coverage on shares of Commscope Holding Company in a research note to investors on Wednesday. They set a “buy” rating on the stock. Separately, analysts at Wells Fargo & Co. initiated coverage on shares of Commscope Holding Company in a research note to investors on Wednesday. They set an “outperform” rating on the stock. Finally, analysts at Jefferies Group initiated coverage on shares of Commscope Holding Company in a research note to investors on Wednesday. They set a “hold” rating and a $17.50 price target on the stock. One equities research analyst has rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus price target of $20.25.
Commscope Holding Company (NASDAQ:COMM) opened at 16.96 on Wednesday. Commscope Holding Company has a 52-week low of $14.77 and a 52-week high of $16.22. The stock has a 50-day moving average of $15.46 and a 200-day moving average of $15.46. The company has a market cap of $3.150 billion and a price-to-earnings ratio of 67.23.
Commscope Holding Company (NASDAQ:COMM) last issued its quarterly earnings data on Thursday, November 7th. The company reported $0.38 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.48 by $0.10. The company had revenue of $888.01 million for the quarter, compared to the consensus estimate of $894.02 million. On average, analysts predict that Commscope Holding Company will post $1.59 earnings per share for the current fiscal year.
CommScope Holding Company, Inc is a provider of connectivity and essential infrastructure solutions for wireless, business enterprise and residential broadband networks.
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