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Investing.com - Rosenblatt has lowered its price target on Comcast Corp (NASDAQ:CMCSA) to $30.00 from $33.00 while maintaining a Neutral rating on the stock. Comcast currently trades at $26.69, just above its 52-week low of $25.75, according to InvestingPro data.
The price target reduction reflects reduced EBITDA estimates for 2026 as Comcast faces a reset in its Connectivity & Platforms segment. The company is expected to absorb lower ARPU from the transition to simpler broadband packaging and a free wireless for 12 months offer for adding broadband, along with competitive pressures in the broadband market.
Comcast shares have declined 29% year-to-date and are trading at what Rosenblatt describes as a trough EV/EBITDA multiple of 5x. This aligns with InvestingPro’s current EV/EBITDA ratio of 4.71x. Despite the decline, the company maintains a healthy 4.95% dividend yield. The firm continues to apply this multiple to its 2026 adjusted EBITDA estimates. According to InvestingPro’s Fair Value assessment, Comcast appears significantly undervalued at current levels.
Rosenblatt projects potential improvement in 2027 growth from the reset base, including the roll-off of free wireless offers and the resumption of regular price hikes from a lower base.
The firm does not expect Comcast to become a winning bidder for Warner Bros. Discovery’s streaming and studio assets, citing the approximately $60 billion value required and Comcast’s current $76 billion net debt position as limiting factors.
In other recent news, Warner Bros. Discovery has initiated a process to improve bids from potential buyers after receiving initial offers. The company, which put itself up for sale last month, has set a deadline of December 1 for enhanced offers. Paramount, Comcast, and Netflix are among those preparing bids, with a November 20 deadline for non-binding first-round offers, as Warner Bros. Discovery aims to complete the auction process by the end of 2025. Meanwhile, Comcast has opened its first Xfinity store in Noblesville, Indiana, offering a range of products and services to local residents and businesses. In another development, NBCUniversal launched a new sports channel, NBCSN, featuring content such as NBA games and Big Ten college football. Additionally, Oppenheimer has downgraded Comcast’s stock rating from Outperform to Perform, citing concerns about growth and potential headwinds over the next five years. These developments highlight the dynamic changes and strategic moves within the media and entertainment industry.
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