What happened
Shares of CommScope (COMM -2.14%), a communication equipment company, jumped on Monday. The stock was up about 11% as of 3 p.m. EDT.
The stock's gain followed news that privately held global communications networks company Petra Systems selected CommScope's Managed Public Networks, which use CommScope's Ruckus wireless Wi-Fi systems, to support the Petra Smart Streetlight Network. An upbeat note from an analyst on Monday likely helped, too.
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So what
The smart streetlight network "provides municipalities, utilities and transportation authorities with robust streetlight-based [Internet of Things] networking they can use to manage high-efficiency adaptive street lighting, add solar power generation, and offer Wi-Fi internet access," CommScope said in a press release on Monday.
In addition, Nomura Instinet analyst Jeffrey Kvaal said in a note to clients on Monday that the company's cash flow should see meaningful improvement in the second half of 2019. To this end, the analyst upgraded his rating for the stock from neutral to buy and reiterated a 12-month price target of $16.
Now what
In CommScope's press release on Monday, the company said Petra Systems' decision to use CommScope's Managed Public Networks "demonstrates CommScope's increasing traction in the growing market for smart city services." IDC forecasts smart city initiatives will be a $135 billion market by 2021, CommScope noted in its press release.
