Seeking Alpha analyst cuts Vistance Networks (VISN) to hold, slashes price target 26% to $20 on revenue decline and restructuring uncertainty. Stock closed at $17.37.
A Seeking Alpha analyst downgraded Vistance Networks (VISN) to hold and cut the 12-month price target to $20 from $27. The stock closed at $17.37.
The analyst said the company, which changed its name from CommScope, sold its broadband networks business to an affiliate of Amphenol Corp. (APH) for $2.1 billion. Proceeds of $1.65 billion allowed Vistance to repay $1.12 billion of debt. The company is also in the middle of a cost restructuring aimed at $100 million to $110 million in annualized savings by mid-2026.
Third-quarter revenue fell 19% year-over-year to $906 million, the analyst noted. Management forecast fourth-quarter revenue of $835 million to $895 million. Free cash flow remained negative despite improvement.
The analyst said the deleveraging and cost cuts make Vistance a more stable business. Still, revenue trends and uncertain demand keep the outlook clouded. The new price target reflects a more cautious stance. The analyst held no position in the stock.
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