Harmonic Stock In Focus After Ancora Holdings Sees Clear Opportunity To Attract Buyers

Shares of broadband and video services provider Harmonic Inc ($HLIT) were up nearly 1% on Monday after investment firm Ancora Holdings said there is a clear opportunity for the company to attract interest from well-capitalized acquirers.

Ancora Holdings Group is a significant shareholder of Harmonic. The firm offers integrated investment advisory, wealth management, retirement plan services and insurance solutions to individuals and institutions across the United States.

Ancora said it plans to engage in a “constructive and open dialogue” with Harmonic to gauge the board of directors’ willingness to evaluate the company’s standalone prospects compared to a potentially value-maximizing sale to one of the many logical acquirers in the space.

“We consider Harmonic to be a great underlying business, but believe the company does not have infinite time to achieve its full potential,” it said in a statement.

The company believes there is a strong case for Ciena Corporation ($CIEN) as a potential suitor for Harmonic considering it has material strategic motivations.

"Acquiring Harmonic would be growth-, margin- and multiple-accretive, and deliver greater customer diversification and increased supplier power. Notably, Harmonic and Ciena also have a shared board member in Patrick Gallagher,” it said.

Ancora further highlighted in a presentation that Harmonic trades at a depressed multiple due to issues with management’s investor communication, rather than fear of actual execution. The firm believes that Harmonic – which currently trades at around $12 – could achieve $22 per share by meeting its 2026 targets and capitalizing on valuation opportunities.

Shares of Harmonic have lost over 8% on a year-to-date basis. In recent days, retail chatter for the ticker on Stocktwits has mostly been positive.

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