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Investing.com - UBS has reiterated its Neutral rating and $36.00 price target on Comcast Corp (NASDAQ:CMCSA) as the cable and media giant faces pressure from increased connectivity investments. The stock, currently trading near its 52-week low at $31.63, appears undervalued according to InvestingPro Fair Value metrics.
The investment firm has updated its estimates to reflect the impact of Comcast’s go-to-market changes, including new broadband pricing, free mobile lines, and increased marketing and customer support expenses. Despite these challenges, Comcast maintains strong financials with $124.18B in revenue and $38.22B in EBITDA over the last twelve months.
UBS now expects Comcast’s total company revenue and EBITDA to decline 3.2% and 1.6% respectively in the third quarter, which is worse than its previous forecast of -2.9% and -0.8%.
For the full year, UBS continues to project flat revenues while EBITDA is expected to decline 1.1%, a downward revision from its previous estimate of -0.5%, with declines anticipated across both the connectivity and content segments.
UBS noted that third-quarter results will likely show the impact of connectivity investments through moderating revenue growth and lower EBITDA, while content EBITDA is expected to grow 2% as strength in theme parks offsets lower performance in Media and Studio divisions. The company maintains a solid 4.07% dividend yield and has consistently paid dividends for 18 consecutive years. InvestingPro subscribers can access 8 additional key insights about Comcast’s financial health and growth prospects.
In other recent news, Comcast reported its second-quarter 2025 earnings, surpassing analyst forecasts with an earnings per share (EPS) of $1.25, compared to the projected $1.16. Revenue also exceeded expectations, reaching $30.31 billion against the anticipated $29.8 billion. Additionally, Comcast’s NBCUniversal is in advanced negotiations with Major League Baseball for a three-year agreement valued at approximately $200 million annually to broadcast games on NBC and its Peacock streaming service. In terms of financial maneuvers, Comcast announced its intention to redeem $2.47 billion in 3.950% notes due October 2025.
RBC Capital initiated coverage on Comcast with a Sector Perform rating and a $38.00 price target, citing competition from fiber and fixed wireless access providers as challenges. Meanwhile, Bernstein reiterated its Market Perform rating on the company with a $36.00 price target, expecting healthy growth in Average Revenue Per User (ARPU) of approximately 3% or higher for the third quarter and near-term periods. These developments highlight Comcast’s ongoing strategies and market positioning amid competitive pressures.
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