This Under-$10 Stock Soars 585% in a Year. What Analysts Think Will Happen Next.

Shares of CommScope (COMM) are on an impressive run, rising more than 585% in a year. This strong rally reflects the company’s solid position as a provider of essential infrastructure solutions for communication, data centers, and entertainment networks.

CommScope’s growth is likely to be supported by the strength of its three core business segments. The Connectivity and Cable Solutions (CCS) segment provides essential fiber optic and copper connectivity solutions, serving a diverse range of sectors, from data centers to residential broadband networks. Meanwhile, the Networking, Intelligent Cellular, and Security Solutions (NICS) segment focuses on wireless networks crucial for both enterprises and service providers. Lastly, the Access Network Solutions (ANS) segment offers essential products, including cable modem termination systems, video infrastructure, and cloud solutions.

CommScope is poised to capitalize on the robust growth in the data center market, driven by increasing investments from hyperscale and cloud customers as they expand their AI infrastructure. Moreover, the rebound in its NICS and ANS segments sets a promising trajectory for future growth. In addition, the company’s strategic move to divest non-core businesses further enhances its operational efficiency.

Despite these positives, the stock’s recent rally has sparked concerns about its valuation. Moreover, its high leverage ratio remains a risk.

Against this background, let’s explore what analysts are forecasting for CommScope stock.

CommScope to Deliver Strong Growth

CommScope is entering the second half of 2025 with strong momentum, signaling a promising outlook. Its CCS business will continue to benefit from the AI-led tailwinds. Moreover, normalized channel inventory in the NICS and ANS segments, new product launches, and its focus on adding incremental selling resources will support its growth.

The company’s CCS segment is experiencing impressive momentum, particularly in its enterprise fiber business, which caters to the rapidly growing data center market. First-quarter revenue from this business soared 88% year-over-year to $213 million, now accounting for 29% of CCS revenue, up from 19% a year ago.

The growth is fueled not only by the expansion of data centers, but also by the increasing demand from new generative AI architectures. These next-gen AI clusters require more fiber connectivity than traditional systems, pushing up demand for CommScope’s fiber solutions. Furthermore, CommScope is accelerating new product development and investing in additional production capacity to capitalize on the rising demand. Its broadband products within CCS are also seeing stronger demand as customer inventories stabilize.

In the NICS segment, which includes the RUCKUS product line, Q1 revenue jumped 51% year-over-year, supported by the launch of Wi-Fi 7 products and the RUCKUS Edge platform. This platform enhances networking and security solutions for sectors such as education, where CommScope has recently secured a significant contract. With channel inventory now normalized, NICS is set up for substantial gains in the second half of 2025.

ANS, CommScope’s access network segment, also delivered solid results, with Q1 sales up 20% and EBITDA up 177% year-over-year, thanks to new node and amplifier products, as well as higher legacy license sales. With a robust pipeline of new offerings and improving market conditions, ANS is expected to keep growing.

In summary, CommScope’s solid performance across all three business segments, improving industry conditions, and focus on new product launches and profitability improvements set the stage for strong growth in the quarters ahead and could potentially boost its share price.

Here’s What Analysts Recommend for COMM Stock

CommScope is poised to deliver solid growth and has been focusing on strengthening its balance sheet, notably paying off its 2026 debt maturities ahead of schedule in the first quarter of 2025. However, despite this progress, CommScope’s net leverage remains elevated, at 7.8 times as of March 31, raising some concerns.

Furthermore, the stock’s recent surge has kept analysts bearish. COMM stock holds a “Moderate Sell” consensus rating. Adding to the concern, the average analyst price target of $5.10 suggests a potential downside of about 36% from current levels. This indicates that analysts believe the stock may be due for a significant pullback, even as the company works to improve its financial health.

The Bottom Line

CommScope’s remarkable rally over the past year reflects the strength of its core businesses and its exposure to rapidly growing sectors, such as data centers and AI infrastructure. Moreover, a rebound in its NICS and ANS segments augurs well for growth. However, elevated debt levels and stretched valuations warrant caution.