Core Thesis - CommScope Holding Company, Inc. is positioned for growth with a bullish outlook due to its critical role in network infrastructure solutions and expected financial improvements [1][2][3]. Company Overview - CommScope is a leading provider of network infrastructure solutions, supplying essential components like fiber-optic cabling and connectors that support data centers and telecom networks [2]. - The company is at the center of increasing demand for bandwidth-intensive applications, which enhances its market position as networks become more complex [2]. Financial Performance - Revenue is projected to grow by approximately 13.0% in FY26, driven by better end-market conditions and increased investments in data center and telecom infrastructure [3]. - EBITDA is expected to surge by about 90.4% during the same period, indicating significant operating leverage as volumes recover [3]. - The anticipated net income margin is around 7.3%, reflecting a transition from restructuring to sustainable profitability [3]. Valuation Metrics - CommScope's current valuation is considered undemanding, trading at approximately 1.9x NTM EV/Sales and 8.1x NTM EV/EBITDA, with a NTM P/E of 9.8x [4]. - The market appears to be discounting the potential durability of the earnings recovery, suggesting room for rerating as EBITDA and net income normalize [4]. Investment Thesis - The company presents a leveraged but improving earnings profile, with exposure to long-term growth in data center and telecom infrastructure [5]. - The current valuation does not fully reflect the scale of the projected operating recovery, indicating potential upside for investors [5].