CommScope upgraded as $10.5 bln cable segment sale eases debt overhang Investing.com -- CommScope was upgraded by Raymond James and Morgan Stanley after announcing the $10.5 billion sale of its Connectivity and Cable Solutions (CCS) segment to Amphenol (NYSE:APH), a move that will eliminate its debt burden and unlock shareholder value. Raymond James raised the stock to Outperform from Underperform, calling the sale a balance sheet “reset” that, alongside strong Q2 results, puts the company on firmer footing. The firm set a $19 price target, noting that datacenter demand now accounts for 40% of CCS sales and helped drive a 20% year-on-year increase in CCS revenue. CommScope reported Q2 revenue of $1.39 billion, beating Street expectations, with adjusted EBITDA of $338 million and EPS of $0.44, well above consensus. The company said it will use the $10 billion in net proceeds from the sale to repay $7.2 billion in debt, redeem all preferred equity, and issue a special dividend. The transaction is expected to close in the first half of 2026. Morgan Stanley upgraded CommScope to Equal-weight from a more cautious stance, saying the deal prices the CCS asset at a premium amid strong AI-related interest in fiber infrastructure. It noted the stock has likely priced in near-term gains, but called the sale the “right move” to unlock value while demand remains high. The remaining business, focused on broadband and enterprise networking, faces slower growth and higher customer concentration but is expected to generate $325–350 million in 2026 EBITDA.

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Amphenol nears $10 bln deal for CommScope’s broadband and cable unit- WSJ Investing.com-- Amphenol Corporation (NYSE:APH) is close to entering a deal to buy communication infrastructure developer Commscope’s (NASDAQ:COMM) broadband connectivity and cable unit for roughly $10.5 billion, the Wall Street Journal reported on Sunday. The deal could be completed by as soon as Monday, the WSJ reported, citing people familiar with the matter. Amphenol’s pursuit of the unit comes as the company sees increasing demand for data centers, which in part require fiber-optic cables for high-speed data transmission. Reports earlier this year said CommScope was considering a sale of the unit, which is its biggest division by sales and operating income. Amphenol had last year bought CommScope’s outdoor wireless network and distributed antenna systems units for $2.1 billion. With APH making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed APH alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including APH, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is APH poised for similar growth? Don't miss the opportunity to find out.

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Global Low Voltage Cables Market Forecast: Revenue, Demand & Emerging Technologies

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Vacuum Cable Industry Report: Market Trends & Business Opportunities

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Paramount Reports First Quarter of Streaming Profits Amid Layoffs and Cable Business Charges In a landscape marked by layoffs and hefty financial charges, Paramount's unexpected streaming profits highlight a stark evolution in the media's future.

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