- Credit Suisse analyst Sami Bradi downgraded CommScope Holding Co Inc COMM to Neutral from Outperform with a price target of $12, down from $23, implying a 9.3% downside.
- Equipment supply chain constraints that have elongated equipment delivery times have created a dynamic where CommScope may be recognizing solid demand but may fail to ship equipment against those orders, which will limit its revenue recognition and potential, Bradi notes.
- If product shipment delays extend further, the analyst believes there is a scenario where some existing orders cancel, and customers leverage alternative suppliers for existing projects, making Bradi cautious on CommScope's outlook.
- Price Action: COMM shares traded lower by 1.28% at $13.06 in the premarket session on the last check Tuesday.
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