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Investing.com - Goldman Sachs downgraded Comcast Corp (NASDAQ:CMCSA) from Buy to Neutral on Friday, lowering its price target to $30.00 from $39.00 following the company’s third-quarter 2025 results. The stock is currently trading at $27.32, having fallen 6.69% in the past week and is now trading near its 52-week low of $25.75.
The downgrade reflects Goldman Sachs’ concerns about Comcast’s broadband business, specifically citing the "magnitude of the broadband pricing reset" the company is pursuing and increased operational expenses needed during what it calls a 2025/26 transition year. This aligns with broader analyst sentiment, as InvestingPro data shows 10 analysts have revised their earnings downwards for the upcoming period.
Goldman Sachs noted that while Comcast’s challenges from fiber and fixed wireless access (FWA) competition were anticipated, the firm had underestimated the impact on pricing strategy and expenses. The downgrade breaks from the firm’s previous investment thesis, which had expected Connectivity & Platforms EBITDA growth and margin expansion.
The research firm still views Comcast stock as "potentially attractively valued" on a sum-of-the-parts basis, with premium valuation for Content & Experiences assets. However, it highlights that over 70% of Comcast’s enterprise value remains tied to the Connectivity & Platforms segment.
Goldman Sachs believes the stock "lacks a near-term positive catalyst" in its core business, though it noted improved broadband subscriber and pricing trends could significantly improve investor sentiment toward the company. Despite the challenges, InvestingPro analysis indicates the stock is significantly undervalued compared to its Fair Value, with RSI suggesting it’s in oversold territory. The stock also offers a 4.83% dividend yield, potentially providing income while waiting for a turnaround. Discover Comcast’s complete financial health score and 12 additional ProTips with InvestingPro’s comprehensive research report.
In other recent news, Comcast reported its third-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $1.12, compared to the forecasted $1.10. Revenue also exceeded predictions, reaching $31.2 billion against the anticipated $30.7 billion. Despite these positive earnings results, TD Cowen adjusted its price target for Comcast to $40 from $46, citing EBITDA pressures, although it maintained a Buy rating on the stock. Additionally, KeyBanc downgraded Comcast from Overweight to Sector Weight, expressing concerns about increased investment needs and reduced shareholder returns. This downgrade occurred even though Comcast reported better-than-expected broadband and mobile net additions. These recent developments highlight the mixed perspectives among analysts regarding Comcast’s financial outlook.
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