{"id":521461,"date":"2022-12-05T15:45:11","date_gmt":"2022-12-05T12:45:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/comcast-stock-gets-upgrade-even-though-analyst-is-bearish-on-nbcu\/"},"modified":"2022-12-05T15:45:11","modified_gmt":"2022-12-05T12:45:11","slug":"comcast-stock-gets-upgrade-even-though-analyst-is-bearish-on-nbcu","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/comcast-stock-gets-upgrade-even-though-analyst-is-bearish-on-nbcu\/","title":{"rendered":"#Comcast Stock Gets Upgrade Even Though Analyst Is \u201cBearish on NBCU\u201d"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27821fadc5d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27821fadc5d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/comcast-stock-gets-upgrade-even-though-analyst-is-bearish-on-nbcu\/#Comcast_Stock_Gets_Upgrade_Even_Though_Analyst_Is_%E2%80%9CBearish_on_NBCU%E2%80%9D\" >Comcast Stock Gets Upgrade Even Though Analyst Is \u201cBearish on NBCU\u201d<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Comcast_Stock_Gets_Upgrade_Even_Though_Analyst_Is_%E2%80%9CBearish_on_NBCU%E2%80%9D\"><\/span>Comcast Stock Gets Upgrade Even Though Analyst Is \u201cBearish on NBCU\u201d<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Comcast has earned an upgrade from Wells Fargo analyst Steven Cahall, who raised his stock rating from \u201cunderweight\u201d to \u201cequal weight\u201d on Monday despite a bearish outlook on the cable, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> and tech giant\u2019s entertainment unit NBCUniversal. He also raised his stock price target on the company, led by chairman and CEO Brian Roberts, by $8 to $38.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    \u201cWe\u2019re less negative on Comcast\u2019s cable outlook with slower earnings before interest, taxes, depreciation and amortization (EBITDA) growth, but also clearer capital expenditures (capex),\u201d he explained. \u201cWe\u2019re more negative on NBCU and below Street on free cash flow. Net\/net we now think Comcast is de-risked and fair value is around $38.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Cahall said he was \u201cmoving NBCU to a bearish media outlook,\u201d explaining:\u00a0\u201cWe\u2019re more aggressively cutting numbers at NBCU to bake in around 7 percent annual sub declines, weakness in entertainment scatter ad pricing (recession, AVOD) and peak losses at Peacock. Our NBCU adjusted EBITDA for 2023\/24 is $4.6 billion\/$5.9 billion, which is 25 percent\/9 percent below Street. NBCU EBITDA down 19 percent in \u201923 is similar to what we estimate for peers like Disney linear networks, Warner Bros. Discovery networks, excluding synergies, and Paramount Global TV Media. We reset our NBCU valuation ex-<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">theme<\/a> parks to around seven times enterprise value\/EBITDA, which is consistent with our views on Warner Bros. Discovery and Paramount, reflecting tough linear themes and slower improvement at streaming.\u201d And he noted: \u201cWe\u2019re not sure when Peacock breaks even.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    The Wells Fargo analyst noted \u201clots of NBCU optionality\u201d though.\u00a0\u201cWhile we\u2019re bearish on NBCU operating trends, we think it will benefit from Comcast\u2019s strong balance sheet,\u201d he wrote. \u201cThe media sector is heading into a very challenging period of weaker streaming results and much faster linear degradation. While we think NBCU faces those challenges, it can leverage Comcast\u2019s strong balance sheet opportunistically.\u201d And he highlighted: \u201cComcast\u2019s strong balance sheet gives it options for NBCU that peers lack.\u201d\u00a0<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Cahall then provided some color on and examples of what such opportunities could look like. NBCU could, for example,  add \u201csports rights that become unaffordable to peers,\u201d he argued, mentioning the NBA \u201cnear-term, maybe more NFL longer-term.\u201d Comcast\/NBCU could also end up \u201cmaking a push to acquire Hulu from Disney, which could be more likely given management changes,\u201d the analyst added. Finally, he noted that the company is likely to be \u201cpatiently evaluating consolidation opportunities.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    The Wall Street expert is less negative on the core Comcast cable business though despite various challenges. \u201cWe\u2019ve been long-time bears on Comcast. Some of the theses have played out, with cable derating as competition for subscribers has advanced,\u201d Cahall wrote, predicting \u201cmodestly negative\u201d broadband net additions in 2023 and higher video losses ahead. \u201cWhile broadband competition is increasing, it\u2019s not creating all the bad trends we had feared. ARPU is holding up better, and we think benefiting from cord-cutting\u201d and other trends, he concluded, adding that capex \u201cis well below our\u00a0prior fears.\u201d<\/p>\n<p>Concluded Cahall: \u201cThe result is a less negative outlook for free cash flow\u2026 Better clarity on free cash flow make us more constructive. \u2026 NBCU will likely be a drag, but there is sufficient free cash flow support in our view.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n    Comcast shares were up more than 1 percent in Monday pre-market trading at $36.28.<\/p>\n<\/p><\/div>\n<p><script type=\"text\/plain\" class=\"optanon-category-C0004\">\n!function(f, b, e, v, n, t, s) {\nif (f.fbq) return;\nn = f.fbq = function() {n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);};\nif (!f._fbq) f._fbq = n;\nn.push = n;\nn.loaded = !0;\nn.version = '2.0';\nn.queue = [];\nt = b.createElement(e);\nt.async = !0;\nt.src = v;\ns = b.getElementsByTagName(e)[0];\ns.parentNode.insertBefore(t, s);\n}(window, document, 'script', 'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\nfbq('init', '352999048212581');\nfbq('track', 'PageView');\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more Like this articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/social-media\/\" target=\"_blank\" rel=\"noopener\">Social Media category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.hollywoodreporter.com\/business\/business-news\/comcast-stock-upgrade-analyst-nbcuniversal-1235274996\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Comcast Stock Gets Upgrade Even Though Analyst Is \u201cBearish on NBCU\u201d Comcast has earned an upgrade from Wells Fargo analyst Steven Cahall, who raised his stock rating from \u201cunderweight\u201d to \u201cequal weight\u201d on Monday despite a bearish outlook on the cable, media and tech giant\u2019s entertainment unit NBCUniversal. He also raised his stock price target&#8230;<\/p>\n","protected":false},"author":1,"featured_media":521462,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2021\/08\/Brian-Roberts-Headshot-2021-H-2021.jpg?w=1024","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[72125,124783,71338,105394,5040],"class_list":["post-521461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-mediaa","tag-comcast","tag-international","tag-nbcuniversal","tag-stock","tag-streaming-wars"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/521461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=521461"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/521461\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/521462"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=521461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=521461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=521461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}