Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
👀 Bezos, Buffett & Berkowitz: What's in Their Portfolios? Unlock Data
Comcast Upgraded at Citi - Sees Plans to Improve Shareholder Value
Published Oct 13, 2022 10:16
© Reuters.
By Sam Boughedda
Citi upgraded shares of Comcast (NASDAQ:CMCSA) to Buy from Neutral, with its price target cut to $36 from $42 per share.
Analysts there said in a note on U.S. cable stocks that cable revenue is "going ex-growth," and average EBITDA-based valuations have approached Telco levels for the first time since the period surrounding the financial crisis.
"We believe recent cable share price underperformance is likely getting ahead of 3Q results that are likely to reinforce this new reality. The silver lining for cable is that these firms still generate favorable annual cash flow," wrote the analysts.
Citi also sees an increasing likelihood that the cable firms promptly respond with a plan to stabilize or improve value for shareholders.
The analysts said the plans may "include: grow EBITDA even without meaningful revenue growth with a rising mix of broadband/business revenue; accelerate technology upgrades and efficiency initiatives; monetize under-appreciated assets; and opportunistically invest and repatriate cash to shareholders."
Elsewhere Thursday, Comcast's price target was cut to $45 from $50 per share at Morgan Stanley. Analysts said in a note that "CMCSA shares are now trading in line with Wireline Telco's LUMN and FYBR and at a discount to the rest of cable and T/VZ, despite the most diversified earnings base and lowest financial leverage."
"While media assets have also seen multiple compression, CMCSA is trading at a discount to PARA and WBD as well," added the analysts.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.