CommScope's (COMM) pending sale of its Connectivity and Cable Solutions segment to Amphenol (APH) is expected to make CommScope's financial profile "more attractive," BofA Securities said in a note Thursday.

The CCS sale, expected to close in H1 of 2026, is "another step" in CommScope's breakup to remove the risk of default and enable the company to pay off its debt, according to the note.

BofA said it expects CommScope's remaining segments to jointly grow about 9% annually for the next two years and generate about $340 million annual earnings before interest, taxes, depreciation and amortization in 2025. The firm said the residual currently trades as 3x enterprise value/EBITDA, leaving more room for stock upside.

"[We] could see solid long-term catalysts from the restructuring plan and believe revenue could catch up to orders and growth could accelerate as backlog continues to normalize," BofA said.

BofA double upgraded CommScope to buy from underperform, and raised its price objective to $20 from $4.

Shares of CommScope were up more than 1% in recent trading Thursday.

Price: 14.61, Change: +0.17, Percent Change: +1.18