Comcast stock rating reiterated at Buy by Benchmark amid growth strategy

Published 15/10/2025, 14:52
Comcast stock rating reiterated at Buy by Benchmark amid growth strategy

Investing.com - Benchmark has reiterated its Buy rating and $48.00 price target on Comcast Corp (NASDAQ:CMCSA), while indicating that potential returns may be deferred until next year. Currently trading at $30.08, near its 52-week low of $29.39, InvestingPro analysis suggests the stock is significantly undervalued, with a strong free cash flow yield of 18%.

The research firm expects performance improvements for Comcast’s Connectivity & Platforms segment in the second half of 2026, with upcoming third-quarter results on October 30 providing early indicators of progress in migrating Xfinity’s 31.5 million broadband customers to new product and pricing structures.

Benchmark noted that Xfinity Mobile penetration growth will likely not show major benefits until the second half of 2026, particularly from monetizing new customers who initially sign up for a single free line offer with potential for upgrades later.

The Content & Experiences division (NBCUniversal) is expected to benefit from gradually improving performance metrics at the new Epic Universe theme park and the recently opened Las Vegas horror attraction, even if the broader economy slows in late 2025.

Financial restructuring initiatives include the year-end Versant cable network spin-off, with a Form 10 dated September 18, 2025, and progress on the Sky Germany sale to RTL Group, which together will help shift Comcast’s revenue mix toward 70% high and moderate growth businesses.

In other recent news, Comcast Corporation has completed exchange and cash offers for its outstanding notes, issuing approximately $692 million in new debt. These new notes, maturing in 2037, will bear an interest rate of 5.168% per year, with semiannual interest payments starting in January 2026. Additionally, Comcast has opened a new Flagship Lift Zone at the Opportunities Industrialization Center in Philadelphia, investing over $1 million to enhance digital skills and job training. This initiative aims to provide free high-speed WiFi and support various programs, including hospitality and healthcare. Meanwhile, KeyBanc has adjusted its price target for Comcast to $43, maintaining an Overweight rating due to anticipated challenges in broadband subscriber numbers. The firm expects increased competition from fixed wireless access and fiber net additions. Furthermore, Roku and FreeWheel have expanded their partnership to improve the streaming advertising ecosystem, enhancing targeting and transparency. These developments reflect Comcast’s ongoing strategic efforts in finance, community engagement, and digital innovation.

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