COMM - CommScope falls after Goldman Sachs downgrades on concerns over rising costs

CommScope (NASDAQ:COMM) shares fell on Friday after Goldman Sachs downgraded the network infrastructure company to neutral, citing concerns that inflation could hit the company's recovering margins. Analyst Rod Hall cut his rating to neutral from buy and lowered his price target to $9 from $18, noting that it has already seen a "substantial negative impact" on its margins from higher commodity prices and that may continue. "Given the company had renegotiated large contract prices to compensate for this we had though this might be the bottom on margins," Hall wrote, adding that spot prices for commodities such as copper, aluminum and resin have gone higher since the start of the year.  CommScope shares fell slightly more than 2.5% to $7.67 in premarket trading on Friday. In addition, Hall noted that CommScope's (COMM) contract are likely based on spot prices and may need to be renegotiated to deal with the continued price increases.

For further details see:

CommScope falls after Goldman Sachs downgrades on concerns over rising costs