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Investing.com - TD Cowen has reduced its price target on Comcast Corp (NASDAQ:CMCSA) to $40.00 from $46.00 while maintaining a Buy rating on the stock. The new target still represents significant upside potential from Comcast’s current price of $27.32, which is trading near its 52-week low of $25.75 and about 40% below its 52-week high of $45.31.
The price target adjustment follows Comcast’s third-quarter 2025 results, which TD Cowen described as "good enough" with better-than-feared broadband losses, in-line EBITDA, and free cash flow that exceeded expectations. The company’s strong free cash flow performance aligns with InvestingPro data showing an impressive 18% free cash flow yield.
Despite these results, Comcast management cautioned investors about continued average revenue per user (ARPU) and EBITDA pressures as the company navigates its broadband pivot, which will result in muted share buybacks. This represents a shift from recent strategy, as management had previously been aggressively repurchasing shares according to InvestingPro data.
TD Cowen noted that while the EBITDA pressures had been previously communicated to investors, they may be larger than initially anticipated.
The research firm observed that early subscriber indicators following Comcast’s business revamp are positive, but added that "the degree and timing of the revamp outcome remains TBD."
In other recent news, Comcast reported its third-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.12, compared to the forecasted $1.10, and revenue reached $31.2 billion, exceeding the anticipated $30.7 billion. Despite these positive financial results, Comcast’s stock experienced a decline in pre-market trading. Additionally, KeyBanc downgraded Comcast from Overweight to Sector Weight, citing concerns about increased investment needs and reduced shareholder returns. This downgrade occurred even though Comcast showed better-than-expected broadband and mobile net additions. These developments highlight the mixed reactions from analysts and investors regarding Comcast’s recent performance and future outlook.
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