Extreme Networks (EXTR) Considers Acquiring Ruckus Networks for Over $1 Billion
- Acquisition Interest: Extreme Networks is considering a cash-and-stock acquisition of Ruckus Networks, potentially valuing the deal at over $1 billion, indicating the company's intent to expand in the Wi-Fi and networking systems sector.
- Decision Pending: Despite the acquisition interest, Bloomberg reports that Extreme has not made a final decision and may opt against proceeding, reflecting a cautious approach in its strategic choices.
- Market Reaction: Following the acquisition news, Extreme Networks' stock rose by 1.2%, while CommScope's shares also gained 1%, indicating a positive market response to the potential deal.
- Analyst Ratings: Extreme Networks has recently been initiated with a Buy rating by BofA, and Oppenheimer upgraded its rating amid market expansion, suggesting analysts' optimistic outlook on the company's future performance.
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Stock Performance: Ampheol Corp. (NYSE: APH) experienced a significant drop in share prices, plummeting 17% in a single day following its latest earnings report, despite reporting strong revenue growth and high sales figures for the fourth quarter.
Valuation Concerns: The company's shares have been increasingly viewed as overvalued, with a price-to-earnings (P/E) ratio of 43.4, which is notably higher than the average P/E ratio of 72.5 in the technology sector, raising concerns among investors.
Future Outlook: Analysts remain optimistic about Ampheol's potential for earnings growth, projecting a 12% increase in earnings for the upcoming year, although there are warnings about possible declines in certain areas that could affect future performance.
Acquisition Strategy: Ampheol's recent acquisitions, including CommScope's connectivity solutions, are seen as valuable for expanding its operations and customer base, but they also expose the company to integration risks and potential cost pressures.
- Acquisition Completed: Amphenol Corporation has successfully completed its acquisition of CommScope's Connectivity and Cable Solutions business for $10.5 billion, marking the largest acquisition in Amphenol's history, which is expected to significantly enhance its fiber optic interconnect capabilities in the IT datacom and building infrastructure markets.
- Sales Growth Forecast: According to Truist's research estimates, this acquisition is anticipated to expand Amphenol's sales by approximately 17%, further boosting the company's market share and competitiveness, particularly in the rapidly growing industrial interconnect products sector.
- Profitability Enhancement: Truist analysts noted that Amphenol's acquisitions not only aid in sales growth but also improve operating profit margins and return on invested capital, with an estimated 4% earnings per share accretion expected by 2026 and about 16% long-term growth within two years.
- Price Target Increase: Truist Securities raised Amphenol's price target from $180 to $182 while maintaining a “Buy” rating, reflecting market confidence in Amphenol's future growth potential, although analysts believe certain AI stocks may offer greater upside potential.
- Transaction Closure: CommScope officially closes the sale of its Connectivity and Cable Solutions (CCS) segment to Amphenol, following the definitive agreement signed on August 4, 2025, marking a significant step in the company's strategic restructuring.
- Debt Repayment Strategy: Proceeds from the sale will be utilized to repay all outstanding debts and redeem preferred equity held by Carlyle, which is expected to significantly enhance the company's financial health.
- Shareholder Returns: CommScope plans to distribute excess cash to shareholders as a dividend within 60 to 90 days post-transaction closure, with the dividend expected to be no less than $10 per share, reflecting the company's commitment to shareholder value.
- Brand Transformation: Effective January 14, 2026, CommScope will be renamed Vistance Networks, with its Access Networks Solutions segment rebranded as Aurora Networks, aiming to focus on a more competitive product portfolio to drive future growth.
- Stock Surge: Amphenol's stock rose over 6% by noon today after analysts raised their price targets to $183 and $165 while maintaining buy ratings, reflecting optimistic market expectations for future growth.
- Market Transformation: Amphenol has transitioned from a traditional industrial cycle company to a 'picks-and-shovels' play on AI spending, with projected sales reaching $22.9 billion in 2026, indicating a strategic shift towards emerging markets.
- Acquisition Impact: The acquisition of Commscope's Connectivity and Cable Solutions business is expected to add $4.1 billion in sales by 2026, significantly enhancing Amphenol's fiber optic interconnect capabilities in the IT datacom and communications networks markets.
- Earnings Outlook: Management estimates that the acquisition will increase earnings per share by $0.15 in 2026, with Wall Street expecting $4.42 per share, demonstrating market confidence in Amphenol's future profitability.

- Stock Surge: Amphenol (NYSE: APH) shares rose over 6% by noon today, driven by analysts at Goldman Sachs and BofA raising their price targets to $183 and $165 respectively, reflecting strong market confidence in its growth prospects.
- Market Transformation: The company's electrical, electronic, and fiber-optic connector business is evolving from a traditional industrial cycle player to a 'picks-and-shovels' provider for artificial intelligence (AI) spending, indicating a strategic pivot towards high-growth markets.
- Acquisition Impact: Amphenol's recent acquisition of Commscope's Connectivity and Cable Solutions business is projected to add $4.1 billion in sales by 2026, significantly enhancing its fiber optic interconnect capabilities for IT datacom and communications networks.
- Earnings Outlook: Management estimates that the acquisition will contribute an additional $0.15 to earnings per share (EPS) in 2026, with Wall Street expecting $4.42 in EPS, highlighting the company's potential in AI-related sales and a rebound in industrial markets.
- Chip Launch: Nvidia unveiled its Rubin chips at CES, designed to enhance AI data center computing efficiency, leading to a positive market reaction and a rise in stock price, reflecting strong demand in the AI sector.
- Amphenol Stock Fluctuation: Although Amphenol's stock initially dropped 5% following the chip announcement, Evercore ISI analysts noted that the Rubin chips could increase demand for Amphenol's connectors by 20% to 40%, improving its market outlook.
- Acquisition Boost: Amphenol completed its acquisition of CommScope's CCS business, expected to generate $4.1 billion in revenue this fiscal year and add $0.15 to earnings per share, further enhancing its financial performance.
- Significant Long-term Returns: Amphenol achieved a 106% return over the past year, surpassing Nvidia's 36%, demonstrating its critical role in the AI revolution and sustained growth potential, despite a high current P/E ratio, the future growth outlook remains optimistic.









