Is Belden Inc. (BDC) A Good Stock To Buy Now?

Is BDC a good stock to buy? We came across a bullish thesis on Belden Inc. on P14 Capital's Substack. In this article, we will summarize the bulls' thesis on BDC. Belden Inc.'s share was trading at $118.66 as of June 29th. BDC's trailing and forward P/E were 19.98 and 14.88 respectively according to Yahoo Finance.

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Belden Inc. provides connection solutions to bring data infrastructure into alignment to unlock new possibilities for its customers. BDC is presented as a leading IT/OT networking infrastructure provider that is being mispriced as a cyclical cable manufacturer despite its transformation into a higher-value connectivity, networking, software, and solutions company.

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The investment thesis argues that the market continues to value Belden based on its post-pandemic destocking period while overlooking improving demand across industrial automation, broadband, and smart buildings, all of which are entering favorable multi-year growth cycles.

Automation is expected to benefit from reindustrialization, labor shortages, and rising automation intensity, while broadband is supported by fiber upgrades, the BEAD program, and increasing network capacity requirements. Smart Buildings is shifting away from commercial real estate toward healthcare, education, hospitality, institutional retrofits, and AI data center infrastructure, where Belden provides mission-critical networking solutions.

The acquisition of RUCKUS Networks is viewed as the primary catalyst despite investor concerns over leverage, as it adds a faster-growing, higher-margin wireless networking business with significant cross-selling opportunities, expands Belden's solutions portfolio, accelerates margin expansion, and strengthens its position in IT/OT convergence and enterprise networking. Additional long-term growth opportunities include Physical AI, edge computing, localized inference, and Wi-Fi 7 adoption, all of which require secure, low-latency networking infrastructure that aligns with Belden's product portfolio.

The author believes consensus estimates materially underestimate the combined company's revenue and earnings potential, while the stock trades at a substantial discount to networking peers despite improving fundamentals. Based on expected revenue growth, margin expansion, acquisition synergies, and multiple re-rating, Belden is projected to reach approximately $235 per share, implying 93% upside within the next two years, while downside is estimated at roughly 20%, creating an attractive long-term risk-reward profile.