2024-05-26 02:25:57 ET
Summary
- CMCSA remains a Buy for value/ dividend-oriented investors, attributed to its overly discounted valuations and expanded forward yields.
- Peacock, its D2C segment, has recorded narrowing losses and increasing paid subscribers, with the subscription price hikes likely to accelerate the top/ bottom line growth over the next few quarters.
- CMCSA's bundled services have also triggered lower churn rates and improved customer lifetime value, in both broadband/ mobile segment and streaming bundling.
- Combined with the healthier balance sheet and potential $15B in Hulu payout, we expect the management to continue investing in its growth opportunities ahead.
- Based on the stock's bullish support at the $37s, we believe that CMCSA continues to offer an attractive risk/ reward ratio at current levels, triggering our reiterated Buy rating.
We previously covered Comcast (CMCSA) in January 2024, discussing why we had maintained our Buy rating, thanks to its moderating debt to EBITDA ratio, excellent shareholder returns, and its extremely discounted valuations.
Its other segments continued to be highly profitable on a YoY basis, implying its ability to weather the slow but inevitable cord cutting and unprofitable streaming in the intermediate term, before things eventually normalize....
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For further details see:
Comcast: Connectivity And D2C Remain Growth Drivers - 3.16% Yields While Waiting