COMM - CommScope falls after BofA downgrades on continued supply constraints

Bank of America downgraded communications equipment provider CommScope (NASDAQ:COMM) from Neutral to Underperform rating, citing near-term growth challenges. The price target is cut to $8 from analyst's prior target of $12, implying a potential downside of 4.65% from the stock's previous close. BofA analyst Tal Liani said the networking industry is experiencing a robust growth cycle, but he believes several near-term challenges will "put a lid on the stock." "The Home Networks business is expected to continue generating headwinds in the short-term due to chip shortages, it will take time to see clear benefits from the company's NEXT restructuring plan and execution risks still exist, and supply constraints are not expected to improve for a few quarters," Liani told investors. CommScope last issued its quarterly earnings results Feb. 16th. The communications equipment provider reported $0.31 earnings per share for the quarter, topping the consensus estimate by $0.14. Overall, Wall Street analysts maintain

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CommScope falls after BofA downgrades on continued supply constraints