Impressive Q1 Results Propel Comcast Stock Upward; Analyst Predicts 'Strong Turnaround'

Shares of Comcast Corporation CMCSA were moving higher on Monday, after the company reported impressive first-quarter earnings and broadband growth.

The company’s earnings were boosted by significantly higher-than-expected Content & Experiences (C&E) financials, broadband subscriber adds and strong cost reductions at Connectivity & Platforms (C&P), according to BofA Securities.

The Comcast Analyst: Jessica Reif Ehrlich upgraded the rating on Comcast from Neutral to Buy, while raising the price target from $44 to $49.

The Comcast Thesis: While the company’s media operations appear well positioned for a “strong turnaround,” low churn and ARPU hikes are driving its connectivity business, Reif Ehrlich said in the upgrade note.

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“These factors, in combination with expense reductions, are driving C&P margin expansion,” the analyst wrote. “At C&E film is on fire, with animation exceptionally strong, which will especially benefit Peacock (where losses are peaking), but also support Theme Parks,” she added.

Reif Ehrlich also stated that the advertising market seems to be stabilizing, with upside potential in the second half of 2023.

CMCSA Price Action: Shares of Comcast were up 1.03% to $41.80 at the time of publication on Monday.

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