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Opinions John O'Connell, CFA
Comcast CorpCMCSACOMMENTMay 31, 2018
Stock price when the opinion was issued
As of Jun 11, 2026. Market Open.
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Premium contentPremium contentFaced with recently reported loss of customers, CMCSA is taking drastic steps to increase offerings to its customers. Analysts expect this will stem the tide and allow the company to regain growth. Despite all this, cash reserves are growing while shares are aggressively bought back -- albeit on the back on some increase in debt. It trades at 7x earnings, 1.2x book and supports a ROE of 25%. We recommend setting a stop-loss at $26, looking to achieve $40 -- upside potential of 22%. Yield 3.9%
(Analysts’ price target is $39.84)Premium contentPremium contentCMCSA released some worrisome news that they expect to continue to lose customers to growing competition. However, they are managing a strategy to off load some of its services and has also announced a partnership with Warner Bros that could open some new revenue streams. We like that cash reserves are growing as debt is retired and shares bought back. It trades at 12x earnings, under 2x book and supports a 17% ROE. We recommend setting a stop-loss at $35, looking to achieve $48 -- upside potential of 20%. Yield 3.1%
(Analysts’ price target is $48.14)It is a play on a return to theme parks. It is at a very low valuation along with streaming growth. It has a healthy balance sheet with lots of cash. At 8X 2025 it is trading way lower than the market.
Greg Newman
Hasn't worked yet. Beat this quarter. Difficult time with broadband. Makes a ton of cash, very healthy balance sheet, should have strong buybacks. Trades at 9x 2025. Cheap name with growth of almost 8%. Decent dividend.
Greg Newman
Gets no respect, as it's seen as cable/TV, a dying business. Has 6 growth businesses: broadband for residential and business, wireless, theme parks, streaming, and studios. Together, those are growing about 10% a year, and will be 75% of the business over the next few years. Anemic 11x, growth of 10%. Defensive, still room to go. Yield is 2.46%.
(Analysts’ price target is $50.31)Greg Newman
Jamie Murray 
A real innovator delivering cable TV. They wanted to go outside US because they want to growth like everybody else in a no-growth industry. If Comcast does pay up for purchasing Fox a big acquisition they will have to take on more debt than they have. And that has put pressure on the stock. He thinks that eventually Walt Disney (DIS-N) is going to buy Fox so the stock could go up out of relief.