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Investing.com - Benchmark lowered its price target on Comcast Corp (NASDAQ:CMCSA) to $46.00 from $48.00 on Friday, while maintaining a Buy rating on the stock. This target remains significantly above the current price of $27.15, with the stock trading near its 52-week low of $25.75 and 40% below its 52-week high of $45.31. According to InvestingPro data, Comcast appears undervalued based on its Fair Value assessment.
The firm cited concerns about broadband pricing, projecting a 1% year-over-year decline in the fourth quarter of 2025, compared to the 2.6% increase observed in the third quarter. Benchmark expects this trend to continue with a 2% decline for the full year 2026. This comes despite Comcast’s modest revenue growth of 2.54% over the last twelve months.
Benchmark noted that Comcast’s pricing strategy contrasts with competitors who are expected to implement low single-digit increases, particularly fiber providers and cable peers. This pricing shift should move Xfinity closer to "competitive parity" despite its differentiated offerings in Wi-Fi leadership and mobile bundles.
The firm had already factored in a 2% long-term Adjusted EBITDA erosion for Comcast’s Connectivity & Platforms division, which partly explains the relatively modest two-point reduction in the price target. At current levels, Benchmark estimates the stock is priced for "low double digits annual declines" in the division’s EBITDA.
Despite near-term challenges, Benchmark expressed confidence that "rational actor behaviour in fixed broadband duopoly markets" should support approximately 2.5% sustainable broadband pricing growth after 2026, alongside growth in Xfinity Mobile, SMB, and Enterprise segments. Investors may also find comfort in Comcast’s 4.83% dividend yield while waiting for this long-term thesis to play out. InvestingPro analysis shows the stock’s RSI suggests it’s in oversold territory, with additional ProTips and comprehensive research available in the Pro Research Report.
In other recent news, Comcast reported its third-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.12, against the forecasted $1.10. Revenue also exceeded predictions, reaching $31.2 billion compared to the anticipated $30.7 billion. Despite these positive earnings results, several firms have adjusted their outlook on Comcast. Seaport Global downgraded Comcast’s stock rating to Neutral from Buy, expressing concerns about the company’s broadband business. Similarly, Goldman Sachs downgraded Comcast from Buy to Neutral, citing challenges in the broadband sector and increased operational expenses. KeyBanc also downgraded Comcast to Sector Weight, highlighting concerns about increased investment needs and reduced shareholder returns. On a more positive note, TD Cowen maintained a Buy rating, although it lowered its price target to $40, reflecting pressures on EBITDA. These developments indicate a cautious outlook from analysts despite Comcast’s recent financial performance.
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