Why This Comcast Analyst Is Turning Bullish: 'Best-In-Class Cable Business'

Comcast Corporation CMCSA seems to be moving in the right direction, and its stock should outperform over the next 12 months, according to Cowen.

The Comcast Analyst: Gregory Williams upgraded Comcast from Market Perform to Outperform and raised the price target from $56 to $60.

The Comcast Thesis: Strength in the cable subsidiary should “should de-risk COVID-impacted segments,” including Sky, which was acquired in 2018, and the NBCUniversal subsidiary, Williams said in the upgrade note.

“Specifically, while we have always felt Comcast has had a best-in-class cable business, the segment’s already impressive strength/defensibility has further improved, underscored by the permanency of COVID-19/WFH (work from home) trends,” the analyst said. 

“Meanwhile, we like the upside to other aspects of the business including its burgeoning xFinity Mobile wireless segment, improvement in NBCU in a postvaccine environment, and upside to Sky following the down year in 2020.” 

The company may announce a buyback program in the back half of 2021 and accelerate share repurchases in 2022, he said. 

CMCSA Price Action: Shares of Comcast were trading 0.85% lower to $50.74 at last check Wednesday.

Photo courtesy of Comcast.