S&P Reiterates its Buy Rating on ARRIS Corp

October 12 00:00 2011

NEW YORK, October 12 (RainbowNewsLine.com) – Analyst Todd Rosenbluth of S&P Equity research reiterates his BUY rating on the shares of Arris Corp (NASDAQ: ARRS).

Analyst Todd Rosenbluth, in a research note published yesterday, mentions that the planned acquisition of BigBand (NASDAQ:BBND) by Arris Corp is a good step by the company. The said acquisition is made for $2.24 a share (CMP as on 11Oct was $1.2) where the cash component is of $53 million or nearly 0.65x Capital IQ consensus ’11 revenues. Analyst considers the proposed deal to bring some diversification to ARISS in the telecom sector. The equipment maker can expect a push in of key customers from Time Warner Cable and will make a good use of a strong cash balance. There is still space for further collaboration that might help the ARISS even further, the analyst adds.