CommScope Sells Major Unit, Debt Reduction Boosts Stock

As of August 7th, 2025, network equipment manufacturer CommScope has taken a significant step in its restructuring efforts. The company has agreed to sell its CCS segment, which previously accounted for as much as three-quarters of its core earnings, to Amphenol.

This divestment is part of CommScope's broader strategy to reduce its substantial $7.4 billion debt load and retire the $1.26 billion in preferred equity held by Carlyle. Since January, the company has already trimmed around $2 billion in debt, helping its stock price climb from under $3 to $7.75 last week.

The latest sale is expected to generate additional proceeds that will further strengthen CommScope's balance sheet. Bank of America has responded by upgrading the stock to a Buy rating, citing the improved financial position and the potential value in the company's remaining Ruckus and ANS business units.

BofA analysts believe these units, which posted strong second-quarter growth of 47% and 65% year-on-year respectively, are currently undervalued, trading at just 3 times estimated earnings. The brokerage sees them as worth roughly double that multiple, based on expectations for 9% annual growth and an 18% margin through 2025.

While management expects some near-term earnings pressure due to one-time factors and industry swings, BofA remains optimistic about CommScope's future, citing the clearer balance sheet and stronger strategic focus as drivers for further stock price gains.