Belden Inc (BDC.N): Transformation Underway but Remains Underappreciated; Initiate Buy

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Belden Inc (BDC.N): Transformation Underway but Remains Underappreciated; Initiate Buy

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26 Jun 2026 04:00:00 ET │ 42 pages

Belden Inc (BDC.N)

Transformation Underway but Remains Underappreciated; Initiate Buy

CITI'S TAKE

We view BDC as poised for sustainable earnings growth as the company

pivots toward a “solutions-based” go-to-market strategy, which is

unlocking larger order sizes, deeper customer engagement, and a favorable Buy

mix of margin accretive “active” products, supporting BDC’s 10%-12% EPS Price (25 Jun 26 16:00) US$121.32

CAGR potential. Exposure to secular growth trends including industrial

Target price US$150.00digitization, IT/OT convergence, Physical AI, and reshoring provide

structural tailwind, which should benefit BDC despite a relatively Expected share price return 23.6%

competitive backdrop. BDC’s elevated leverage following the announced Expected dividend yield 0.0%

RUCKUS acquisition along with lingering macro uncertainty and BDC’s

Expected total return 23.7%limited visibility are N-T risks, but we view current valuation as relatively

compelling and offering an attractive risk/return for long-term investors. Market Cap US$4,725M

We initiate coverage with a Buy rating and a $150 target price.

What do we like? — A combination of secular demand tailwinds, improving shorter-

cycle end markets, and BDC’s “self-help” initiative should underpin higher Price Performance

profitability over time, which we believe is being overlooked by some investors. We (RIC: BDC.N, BB: BDC US)

view BDC as well positioned to benefit from the data infrastructure investment

cycle, supported by ramping automation adoption, the emergence of Physical AI,

focus on domestic manufacturing, and growing demand for smart buildings. As