What's Comcast Stock Worth Now?

May 5, 2015

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In a report published Tuesday, Pacific Crest Securities analysts maintained an Overweight rating on Comcast Corporation (NASDAQ: CMCSA), with a price target of $65, after the company reported its 1Q results ahead of expectations.

Comcast reported its Q1 revenue and GAAP EPS at $17.85 billion and $0.81, respectively, significantly ahead of the Pacific Crest estimates, with every NBCU segment outperforming expectations.

The company’s 1Q cable communications revenue was ahead of expectations, driven by strong broadband subs and ARPU. Operating cash flow was roughly in line.

The EPS estimates for 2015 and 2016 have been raised from $3.24 to $3.39 and from $3.71 to $3.82, respectively, to reflect the 1Q upside and higher share buyback.

The analysts commented, “We expect Comcast to continue operating extremely efficiently. However, at the margin, Comcast’s smaller scale relative to what it would have been if it completed the Time Warner Cable Inc (NYSE: TWC) acquisition is likely to reduce opportunities to invest in new services, increased content rights, and accelerated product rollouts, which reduces our perception of upside in the business.”