Comcast (NASDAQ:CMCSA) Given New $27.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley lowered Comcast’s price target from $29 to $27 while maintaining an “equal weight” rating, implying approximately 23% upside from the stock’s previous close.
• Analyst sentiment remains mixed: Comcast has an average “Hold” rating and a consensus price target of $31.13, with 11 Buy, 12 Hold, and 5 Sell ratings.
• Comcast exceeded quarterly earnings and revenue expectations, reporting $1.04 in EPS and $29.94 billion in revenue, though revenue declined 1.2% year over year and shares opened at $21.91.

Comcast (NASDAQ:CMCSA - Get Free Report) had its target price decreased by stock analysts at Morgan Stanley from $29.00 to $27.00 in a report released on Friday. The brokerage currently has an "equal weight" rating on the cable giant's stock. Morgan Stanley's target price would indicate a potential upside of 23.23% from the stock's previous close.

A number of other research firms also recently issued reports on CMCSA. The Goldman Sachs Group reduced their price target on shares of Comcast from $29.00 to $26.00 and set a "neutral" rating on the stock in a research note on Thursday, July 2nd. Seaport Research Partners upgraded shares of Comcast from a "neutral" rating to a "buy" rating in a research note on Thursday, July 2nd. New Street Research decreased their target price on Comcast from $31.00 to $30.00 and set a "buy" rating for the company in a report on Thursday, June 25th. Rosenblatt Securities reissued a "buy" rating and set a $31.00 price objective on shares of Comcast in a research report on Friday, July 24th. Finally, Freedom Capital upgraded shares of Comcast to a "hold" rating in a research note on Friday, June 12th. Eleven research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $31.13.

Comcast Trading Down 1.0%

Shares of NASDAQ:CMCSA opened at $21.91 on Friday. The firm has a market capitalization of $77.75 billion, a price-to-earnings ratio of 7.09, a price-to-earnings-growth ratio of 1.58 and a beta of 0.68. The business's 50 day moving average price is $24.91 and its 200-day moving average price is $25.70. The company has a debt-to-equity ratio of 0.94, a current ratio of 0.80 and a quick ratio of 0.80. Comcast has a 1 year low of $21.28 and a 1 year high of $32.85.

Comcast (NASDAQ:CMCSA - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The cable giant reported $1.04 EPS for the quarter, topping the consensus estimate of $0.97 by $0.07. Comcast had a return on equity of 14.77% and a net margin of 8.97%.The company had revenue of $29.94 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same period in the previous year, the business earned $1.25 EPS. Comcast's quarterly revenue was down 1.2% on a year-over-year basis. On average, equities research analysts forecast that Comcast will post 3.5 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Comcast

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Allied Private Wealth LLC purchased a new stake in Comcast during the second quarter worth about $26,000. Whipplewood Advisors LLC increased its position in shares of Comcast by 75.5% in the first quarter. Whipplewood Advisors LLC now owns 932 shares of the cable giant's stock valued at $27,000 after buying an additional 401 shares in the last quarter. Main Street Group LTD purchased a new stake in shares of Comcast in the 1st quarter worth about $27,000. Thompson Investment Management Inc. purchased a new stake in shares of Comcast in the second quarter valued at about $29,000. Finally, Provenance Wealth Advisors LLC acquired a new stake in Comcast during the 1st quarter valued at $30,000. Institutional investors and hedge funds own 84.32% of the company's stock.

Comcast News Summary

Here are the key news stories impacting Comcast this week:

• Positive Sentiment: Comcast’s depressed valuation and cash flow remain potential supports for the stock. The company generated nearly $18 billion in free cash flow over the past year, while its low earnings multiple has prompted some investors to argue that the shares may be undervalued. Comcast stock could be undervalued article
• Positive Sentiment: Comcast’s FreeWheel advertising technology is developing tools to help connected-TV advertisers measure viewer attention and ad quality, which could support the company’s longer-term advertising prospects. Moffett Nathanson and Citi still maintain Buy ratings, despite reducing their price targets. Comcast advertising technology article
• Neutral Sentiment: Moffett Nathanson cut its price target from $52 to $43, and Citi reduced its target from $30 to $27.50, but both firms retained Buy ratings. The target reductions signal lower near-term expectations while indicating that analysts still see substantial recovery potential. Comcast price target changes
• Negative Sentiment: KeyBanc downgraded Comcast to Underweight and established an $18 price target, citing intensifying broadband competition from fiber providers such as AT&T and Verizon. The firm expects Comcast’s third-quarter broadband subscriber trends unlikely to improve year over year. KeyBanc Comcast downgrade
• Negative Sentiment: Analysts warn that Comcast may need to keep lowering broadband prices to defend its customer base, potentially pressuring revenue, margins and other key performance metrics. The concern has pushed the stock toward its lowest level in roughly 13 years. Comcast downgrade and price-target cuts

About Comcast

Comcast Corporation NASDAQ: CMCSA is a global media and technology company that provides broadband, wireless, video, voice and related services to residential and business customers. Through its connectivity businesses, Comcast offers internet access, mobile service, pay television, telephone service, and home security and automation products, primarily under the Xfinity brand in the United States.

Comcast also operates a broad portfolio of entertainment and media businesses. NBCUniversal includes the NBC and Telemundo broadcast networks, cable networks, film and television studios, the Peacock streaming service, and a collection of theme parks.

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