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KeyBanc downgraded the stock to underweight on Friday, which is a signal that they expect it to perform worse than other companies in the market. This is a notable shift from a major firm, especially as the stock is already trading well below the average analyst target of $28.
While the company is working to spin off its slower-growing media assets like NBCUniversal to focus on its core broadband business, some analysts remain concerned about competition. Rivals offering fiber-optic lines and 5G home internet continue to challenge the company's lead in the home internet market.
Attendance is weakening at Universal theme parks as travelers pull back on spending. To win over the fewer people who are traveling, Disney has begun offering tickets for as low as $59, putting more pressure on Universal to either lower its own prices or lose more visitors.
This matters because theme parks have been a reliable source of cash while the company's traditional cable TV business shrinks. If the slowdown lasts, it could squeeze profits just as the company is preparing to spin off its media and park assets into a separate business.
Comcast and Paramount are reportedly considering winding down SkyShowtime, a joint streaming service they launched to compete in Europe. The venture was designed to share the high costs of technology and content while reaching markets where neither company had a dominant presence.
Closing the service would signal a shift in how Comcast handles its international media business. As the company prepares to spin off its NBCUniversal and Sky cable networks, it is likely looking to cut ties with underperforming assets and focus on its core broadband and mobile businesses in the U.S.
Source: Reuters
UBS set a price target of $35 for the stock on Wednesday. This is notably higher than the average analyst target of $29 and the current trading price of about $23. While a price target is just an estimate of where the stock might trade in the future, it suggests some analysts see significant room for the stock to recover from its recent slump. No change in rating was reported with this move.
Source: UBS
Comcast's wireless brands, Xfinity Mobile and Comcast Business Mobile, will begin taking pre-orders for the new iPhone 18 Pro models on September 12. The company will also carry the new iPhone Duo later in October. While carrying the latest phones is a routine part of being a wireless provider, it is an important tool for Comcast's strategy of bundling mobile service with home internet. Offering the newest hardware helps the company attract and keep customers, which makes their overall relationship with Comcast harder to walk away from.
Source: Business Wire
Management consistently sets a conservative bar and clears it, delivering eight straight beats even as total sales stay flat. This track record suggests you can trust their forecasts to be a floor rather than a ceiling.
| Expectation | |
|---|---|
| EPS | $0.98 |
| Revenue | $29.26B |