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Fly News Breaks for January 8, 2020
COMM
Jan 8, 2020 | 06:51 EDT
BofA analyst Tal Liani upgraded CommScope to Buy from Neutral. In a research note to investors, Liani says he sees the risk/reward skewed to the upside. The analyst says he thinks valuation support and meaningful $650M+ FCF generation expected in 2020 should result in consistent deleveraging over the next 2-3 years toward the longer-term leverage target of 2-3x. The analyst believes deleveraging could add $4-$7, or 30%-50% upside potentialto the stock price. Liani also sees the potential for the fundamentals to rebound as the 5G cycle picks up and the spending environment improves modestly.
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