COMM

CommScope Holding Company Inc

TMT


Presented:04/14/2021
Price:$17.16
Cap:$3.49B
Current Price:$5.83
Cap:$1.26B

Presented

Date04/14/2021
Price$17.16
Market Cap$3.49B
Ent Value$12.90B
P/E RatioN/A
Book Value$1.77
Div Yield0%
Shares O/S203.40M
Ave Daily Vol2,659,594
Short Int3.94%

Current

Price$5.83
Market Cap$1.26B
CommScope Holding Co., Inc. engages in the provision of infrastructure solutions for communications networks. It operates through the following segments: Broadband; Home; Outdoor Wireless Networks (OWN); and Venue and Campus Networks(VCN). The company was founded by Frank M. Drendel in 1976 and is headquartered in Hickory, NC.

Publicly traded companies mentioned herein: AT&T Inc (T), CommScope Holding Co Inc (COMM), JP Morgan Chase & Co (JPM), T-Mobile US Inc (TMUS), Verizon Communications Inc (VZ) 

Highlights

The presenter is long shares of CommScope Holding Co Inc (COMM), which provides infrastructure solutions for communications and entertainment networks. In 2020, the company replaced the previous management team with well-incented leadership that has inspired confidence in his outlook. He is also bullish regarding COMM’s restructuring opportunity, the recently announced plan to spin-off its Home Network business, and the upcoming benefit from increased wireless spend. The stock trades at ~9x 2022 consensus EBITDA of $1.4B, but he expects COMM to beat that projection by 15% – 20% given the company’s opportunities and management’s tendency to guide low. He thinks that if COMM can beat expectations for a few quarters and show backlog growth, the stock can at least double from its current ~$17 share price over the next two years. 

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Idea Discussion

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