Oct. 3 at 1:05 PM
$COMM Here’s why this stock could see 60% growth by H2 26 (SP 25$)
1. They’re moving away from heavy capital intensive cabling and connector manufacturing into a leaner, higher margin company focused on enterprise Wi-Fi / edge network and ANS after agreeing to sell its connectivity & cable solutions unit to Amphenol for
$10.5B cash. (closing expected H1 26).
2. Current debt will be wiped and remaining cash returned to SH thru dividends.
3. Recent results show improving profitability (Q2 2025: net sales 1.39B; adjusted EBITDA 338M) & margin recovery.
4. The ANS & Wi-Fi/edge markets are growing rapidly (20-25% & 14-15% CAGR, respectively), & their focus on next gen products like DOCSIS & Wi-Fi 7 aligns with AI data center demand.
After sale: (EV) 5.55B ÷ (shares) 220M =
$25.23 SP
It’s a mod/high risk play that depends heavily on the sale of CCS. At this point, the sale is moving forward as planned with no obstacles in the way of completion.
Just my take, do your own DD.
$APH
