COMM - CommScope gains after announcing plan to spin off home networks business

CommScope (COMM) rose 5.1% on a plan to spin off its Home Networks business.The separation will be executive through a tax-free spin off to CommScope holders to form a new public company. The separation is expected to be completed by the end of Q1 of 2022, according to a statement.Upon completion of the separation, Joe Chow, Home Networks senior vice president, will become CEO of the stand-alone Home Networks company. CommScope will continue to be led by Chuck Treadway, president and CEO, and its current management team.The announcement makes "perfect sense" given the company's decision to suspend quarterly guidance to provide new CEO Treadway time to assess the company's businesses, according to Credit Suisse.Credit Suisse analyst Sami Badri (outperform, $21 PT on CommScope) views the strategic spin decision positively.Recall Feb. 17, CommScope EPS beats by $0.15, misses on revenue.

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CommScope gains after announcing plan to spin off home networks business