Comcast Upgraded to Citi – Sees Plans to Improve Shareholder Value By Investing.com
© Reuters. Comcast (CMCSA) upgraded to Citi – sees plans to improve shareholder value
By Sam Boughedda
Citi upgraded Comcast (NASDAQ:) shares to buy at Neutral, with its price target reduced to $36 from $42 per share.
Analysts there said in a note on U.S. cable stocks that cable revenues were “growing ex-growth” and average EBITDA-based valuations approached Telco levels for the first time since the period surrounding the financial crisis.
“We believe Cable’s recent stock price underperformance is likely ahead of Q3 results which are likely to reinforce this new reality. The bright side of Cable is that these companies are still generating favorable annual cash flow. “, wrote the analysts.
Citi also sees a growing likelihood that cable companies will respond quickly with a plan to stabilize or improve shareholder value.
Analysts said plans could “include: increase EBITDA even without significant revenue growth with an increasing broadband/business revenue mix; accelerate technology upgrades and efficiency initiatives; monetize underserved assets; estimated; and opportunistically invest and repatriate cash to shareholders”.
Elsewhere on Thursday, Comcast’s price target was cut to $45 from $50 per share at Morgan Stanley. The analysts said in a note that “CMCSA shares now trade in line with those of Wireline Telco and at a discount to the rest of cable and T/VZ, despite the most diversified revenue base and leverage. weakest financier.
“While media assets have also seen multiple compression, CMCSA is trading at a discount and also,” the analysts added.