Cranking Up the Comcast Cash Machine: Connectivity EBITDA Margin and Financial Boost Drive Analyst Price Target Hike

Citigroup analyst Michael Rollins maintains Comcast Corp CMCSA with a Buy and raises the price target from $45 to $47.
The analyst updated his Comcast model for 1Q23 results.
First quarter results reaffirmed the opportunity for Comcast to improve broadband revenue and its overall connectivity EBITDA margin from the mix shift to higher-margin services, even while the broadband volume remains in an ex-growth position.
NBCUniversal results were broadly better than expected and saw a better full-year financial performance from its Content & Experiences segment.
The analyst remains a Buyer of CMCSA shares on the opportunity to improve financial performance and retain financial flexibility to enhance shareholder value over the next 12 months.
Benchmark analyst Matthew Harrigan maintains Comcast with a Buy and raises the price target from $46 to $49.
The re-rating reflects last week’s earnings results and high confidence in Universal’s creative pipeline following its CinemaCon presentation.
Universal Pictures is readily neglected, given its moderate contribution to overall earnings. Still, a hot studio run benefits the Parks business and Media as the first window Universal film releases are on Peacock.
He believes Universal is outperforming the other first-tier studios in creating new franchises even as established hit live-action and high-margin animation franchises provide a more predictable profitability backbone.
Universal’s CinemaCon presentation to exhibitors showed momentum likely to extend beyond The Super Mario Bros Movie and this summer’s Fast X with a highly diverse slate of movies.
Comcast’s breadth implies NBCUniversal is ready to weather any WGA (Writers Guild of America) and AMPTP (Alliance of Motion Pictures and Television Producers) strike(s).
Price Action: CMCSA shares traded lower by 1.61% at $40.97 on the last check Tuesday.

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