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On Tuesday, JPMorgan analyst Philip Cusick maintained a Neutral rating on Comcast Corp (NASDAQ:CMCSA) with a steady price target of $39.00. According to InvestingPro data, Comcast currently trades at an attractive P/E ratio of 8.9x and maintains a robust dividend yield of 3.6%, having increased its dividend for 5 consecutive years. Cusick updated Comcast’s financial estimates following the company’s recent conference appearance, where it was noted that the competitive landscape is expected to result in a loss of 145,000 broadband customers in the first quarter of the year.
The updated projections include a slight decrease in the first quarter consolidated EBITDA to $9.22 billion, a 1% dip due to lower Cable and Programming (C&P) revenue and increased costs, totaling $8.24 billion. However, Cable and Entertainment (C&E) estimates remain unchanged at $1.30 billion. Adjusted first-quarter Free Cash Flow (FCF) is anticipated to be $4.52 billion, with adjusted earnings per share (EPS) of $1.02, attributed to the lower EBITDA.
Despite these adjustments, JPMorgan’s outlook on Comcast is cautiously optimistic, recognizing the company’s potential for free cash flow growth and shareholder returns in 2025. The firm is encouraged by Comcast’s more aggressive broadband acquisition strategy but awaits signs of improvement in customer volume before changing its stance on the stock.
The price target set by JPMorgan for December 2025 is based on a 6.0x multiple of the forecasted 2026 enterprise value to EBITDA ratio, and an 8.6x multiple of the estimated 2026 free cash flow, compared to the current levels of 5.9x and 8.1x for the respective 2025 estimates. This valuation reflects JPMorgan’s anticipation of Comcast’s financial performance and market position in the coming years.
In other recent news, Comcast Corporation reported a challenging fourth-quarter earnings for 2024, prompting Rosenblatt Securities to lower its stock price target from $45 to $36, while maintaining a Neutral rating. This revision reflects a cautious outlook on Comcast’s financial trajectory, despite the company’s strategic moves to align with successful tactics used by Charter Communications (NASDAQ:CHTR). Additionally, Comcast has announced the appointment of David Novak as Chairman of the Board for SpinCo, a planned spin-off entity that will include brands like USA Network and CNBC, generating approximately $7 billion in annual revenue.
Comcast also introduced a new WiFi 6E gateway designed for multifamily properties, offering residents "Instant On" internet connectivity and enhanced cybersecurity features. This move aligns with Comcast’s strategy to strengthen its position as a leading connectivity solutions provider in the multifamily market. In a significant development, Comcast’s NBCUniversal has extended its partnership with the International Olympic Committee through 2036, securing media rights for the Olympic Games across all platforms in the United States, valued at $3 billion.
Meanwhile, Lester Holt announced he will step down as the anchor of NBC Nightly News, though he will continue his role at Dateline. NBC has not yet named his successor for Nightly News. These developments reflect Comcast’s ongoing efforts to adapt and expand its influence in various sectors, from media rights to technological advancements in connectivity.
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