Oppenheimer analyst Timothy Horan maintained an Outperform rating on Comcast Corp (NASDAQ: CMCSA) with a price target of $55.
CMCSA reported a second straight quarter of impressive beats in EBITDA and FCF as 3Q profitability prevailed over chasing low-quality subscribers.
Softness in broadband subscribers seemed to overshadow otherwise strong consolidated results this quarter. Horan notes that focusing on FCF growth versus subscribers is the right strategy and is positive for the industry.
Significant network upgrades and footprint expansion will ultimately stabilize broadband but will take several years as they have a 70% subscriber market share.
CMCSA is expanding margins, has a strong balance sheet, and returns FCF ...